Madison Dearborn Partners
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Madison Dearborn Partners (MDP) is an American
private equity firm A private equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leve ...
specializing in
leveraged buyouts A leveraged buyout (LBO) is one company's acquisition of another company using a significant amount of borrowed money ( leverage) to meet the cost of acquisition. The assets of the company being acquired are often used as collateral for the loa ...
of
privately held A privately held company (or simply a private company) is a company whose shares and related rights or obligations are not offered for public subscription or publicly negotiated in the respective listed markets, but rather the company's stock is ...
or
publicly traded A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange (list ...
companies, or divisions of larger companies; recapitalizations of family-owned or closely held companies; balance sheet restructurings; acquisition financings; and growth capital investments in mature companies. MDP operates using an industry-focused investment approach and focuses on the following sectors: basic industries, business and government software and services, financial & transaction services, health care, and TMT services. Since the founders established MDP as an independent firm in 1992, the firm has raised seven funds with aggregate capital of approximately $23 billion, and has completed investments in more than 130 companies.


History

Madison Dearborn Partners was founded in 1992 and is based in Chicago, Illinois. The founders, John A Canning Jr, Paul J. Finnegan, Samuel M. Mencoff, and Nicholas W. Alexos, had previously made
private equity In the field of finance, the term private equity (PE) refers to investment funds, usually limited partnerships (LP), which buy and restructure financially weak companies that produce goods and provide services. A private-equity fund is both a ty ...
investments for
First Chicago Bank First Chicago Bank was a Chicago-based retail and commercial bank tracing its roots to 1863. Over the years, the bank operated under several names including The First National Bank of Chicago and First Chicago NBD (following its 1995 merger with ...
. The north-east corner of First Chicago's then-headquarters was at the intersection of Madison and Dearborn Streets. Madison Dearborn's chairman, John Canning, Jr., is also a minority owner of the
Milwaukee Brewers The Milwaukee Brewers are an American professional baseball team based in Milwaukee. They compete in Major League Baseball (MLB) as a member club of the National League (NL) National League Central, Central division. The Brewers are named for t ...
baseball team and submitted an ultimately unsuccessful bid to buy the
Chicago Cubs The Chicago Cubs are an American professional baseball team based in Chicago. The Cubs compete in Major League Baseball (MLB) as part of the National League (NL) Central division. The club plays its home games at Wrigley Field, which is located ...


Investments

In 1998, the firm bought
Reiman Publications Trusted Media Brands, Inc. (TMBI), formerly known as the Reader's Digest Association, Inc. (RDA), is an American multi-platform media and publishing company that is co-headquartered in New York City and White Plains, New York. The company was ...
, based in
Greendale, Wisconsin Greendale is a village in Milwaukee County, Wisconsin, United States. The population was 14,854 at the 2020 census. Greendale is located southwest of Milwaukee, Wisconsin, and is a part of the Milwaukee metropolitan area. A planned community, i ...
, from
Roy Reiman Roy J. Reiman (born May 16, 1934) is the founder of Reiman Publications based in Greendale, Wisconsin, which is best known for its country-oriented magazines, books, and other home products. Roy Reiman is credited with building the country’s ...
for $640 million. In 2002, the firm sold Reiman Publications to
Reader's Digest Association Trusted Media Brands, Inc. (TMBI), formerly known as the Reader's Digest Association, Inc. (RDA), is an American multi-platform media and publishing company that is co-headquartered in New York City and White Plains, New York. The company was ...
. In 2007, the firm joined with
Michael Eisner Michael Dammann Eisner (born March 7, 1942) is an American businessman and former chairman and chief executive officer (CEO) of The Walt Disney Company from September 1984 to September 2005. Prior to Disney, Eisner was president of rival film st ...
's
Tornante The Tornante Company, LLC is an American privately held investment firm founded in 2005 and owned by former Paramount Pictures and The Walt Disney Company CEO Michael Eisner. Tornante invests in, acquires, and operates media and entertainment ...
investment company to buy out
baseball card A baseball card is a type of trading card relating to baseball, usually printed on cardboard, silk, or plastic. In the 1950s they came with a stick of gum and a limited number of cards. These cards feature one or more baseball players, teams, stad ...
maker
The Topps Company The Topps Company, Inc. is an American company that manufactures chewing gum, candy, and collectibles. Formerly based in New York City, Topps is best known as a leading producer of American football, baseball, basketball, ice hockey, soccer, ...
. Madison Dearborn completed
leveraged buyout A leveraged buyout (LBO) is one company's acquisition of another company using a significant amount of borrowed money (leverage) to meet the cost of acquisition. The assets of the company being acquired are often used as collateral for the loan ...
transactions for a number of
publicly traded A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange (list ...
and other significant companies in 2006 and 2007 including: *
Asurion Asurion, LLC is a privately held company based in Nashville, Tennessee, that provides insurance for smartphones, tablets, consumer electronics, appliances, satellite receivers and jewelry. In 2014, the company operated in 14 countries and had 4 ...
*
CDW CDW Corporation, headquartered in Lincolnshire, Illinois, is a provider of technology products and services for business, government and education. The company has a secondary division known as ''CDW-G'', devoted solely to United States govern ...
*
LA Fitness LA Fitness (doing business as LA Fitness International LLC) is an American gym chain with more than 700 clubs across the United States and Canada. The company was formed in 1984 and is based in Irvine, California. History LA Fitness was founde ...
*
Nuveen investments Nuveen is an American asset manager and wholly owned subsidiary of financial planning firm TIAA, itself known for its legacy focus on managing money for not-for-profit institutions such as universities and their employees. As a consequence of int ...
; in 2014, a plan for MDP to sell Nuveen to
TIAA-CREF The Teachers Insurance and Annuity Association of America-College Retirement Equities Fund (TIAA, formerly TIAA-CREF), is a Fortune 100 financial services organization that is the leading provider of financial services in the academic, research ...
for $6.25 billion was announced; while the ''
Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
'' cited an anonymous source close to the transaction to the effect that MDP "will have broken even on the transaction",
Felix Salmon Felix Salmon (born 1972) is a financial journalist, formerly of ''Portfolio Magazine'' and ''Euromoney'' and a former finance blogger for Reuters, where he analyzed economic and occasionally social issues in addition to financial commentary. In Apr ...
queried that assertion at Reuters; Dan Primack at ''
Fortune Fortune may refer to: General * Fortuna or Fortune, the Roman goddess of luck * Luck * Wealth * Fortune, a prediction made in fortune-telling * Fortune, in a fortune cookie Arts and entertainment Film and television * ''The Fortune'' (1931 film) ...
'' then published additional information about auxiliary benefits to MDP to buttress the break-even claim. *Sorenson Communications *
Univision Communications TelevisaUnivision (formerly known as Univision Communications) is a Mexican-American media company headquartered in New York and Mexico City, which owns the American Spanish language broadcast network Univision. 45% of the company is held by the ...
*
VWR International VWR International is an American company involved in the distribution of research laboratory products, with over 1,200,000 items to more than 250,000 customers in North America and Europe. The U.S. division is headquartered in Radnor, Pennsylv ...
*
Yankee Candle The Yankee Candle Company (referred to simply as Yankee Candle) is an American manufacturer and retailer of scented candles, candleholders, accessories, and dinnerware. Its products are sold by thousands of gift shops nationwide, through cat ...


Bell Canada

On June 30, 2007,
Bell Canada Enterprises BCE Inc., formerly Bell Canada Enterprises Inc., is a publicly traded Canadian holding company for Bell Canada, which includes telecommunications providers and various mass media assets under its subsidiary Bell Media Inc. Founded through a cor ...
(BCE) announced that the company entered into a definitive agreement for BCE to be acquired pursuant to a plan of arrangement by an investor group led by Teachers Private Capital, the private investment arm of the Ontario Teachers' Pension Plan, Providence Equity Partners Inc. and Madison Dearborn Partners. The all-cash transaction was valued at C$51.7billion (US$48.5 billion), including C$16.9 billion (US$15.9 billion) of debt, preferred equity and minority interests. The arrangement was approved on September 21, 2007, at a special meeting of shareholders by more than 97% of the votes cast by holders of common and preferred shares, voting as a single class.


Investment funds

MDP invests through a series of private
limited partnerships A limited partnership (LP) is a form of partnership similar to a general partnership except that while a general partnership must have at least two general partners (GPs), a limited partnership must have at least one GP and at least one limited p ...
and its investors include a variety of
pension funds A pension fund, also known as a superannuation fund in some countries, is any plan, fund, or scheme which provides retirement income. Pension funds typically have large amounts of money to invest and are the major investors in listed and priva ...
, endowments and other
institutional investors An institutional investor is an entity which pools money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include commercial banks, central banks, credit unions, government-linke ...
: Sources:Madison Dearborn Partners Overview


Selected portfolio


References


External links

* {{Merchant banking private equity groups Financial services companies established in 1992 Investment banking private equity groups Private equity firms of the United States Companies based in Chicago