Golden Gate Capital is an American private equity firm based in San Francisco. The firm makes investments in a number of select industries, including technology, financial services, retail and industrial, through leveraged buyout transactions, as well as significant minority purchases and growth capital investments., it had over $15 billion in assets under management. The firm was founded in 2000 by former investment professionals from private equity firm Bain Capital and its affiliate, Bain & Company, led by former Bain Capital partner David Dominik. Golden Gate's investment fund is structured as an evergreen fund with no finite life, meaning Golden Gate does not have to sell all investments within five to 10 years in order to raise another fund and can instead fund-raise as deals are made. As of 2017, the firm had approximately 54 investment professionals.
Holdings
Following the bursting of the Dot-com bubble, the firm had shown a pattern of investments in technology companies that may have been distressed by the Great Recession in the United States at that time. In 2006, it bought Neways International for $500 Million, acquiring the company at an auction held by the divorce court. A prior $700 million transaction, led by Ramy El-Batrawi, had been abandoned, due to feuding between the divorcing couple that owned Neways International, each of whom were convicted, the previous year, on "six counts of income tax evasion and a conspiracy to defraud the IRS", and sentenced to more than two years in prison. On May 15, 2007, Limited Brands announced its intent to sell a 67% stake in Express to Golden Gate Capital Partners. When the sale was finalized, in July 2007, Golden Gate's stake in the company was 75% for approximately $550 Million, instead of the announced 67%. Through its unit, Mac Acquisition LLC, in 2008, the firm acquired a majority stake in the Romano's Macaroni Grill restaurant chain for $131 Million. In October 2017, Mac Acquisition LLC filed for Chapter 11 bankruptcy protection, from which it was able to emerge in February 2018. In June 2009, the company announced the purchase of the J.Jill brand business from Talbots. In April 2011, the Bahrain-based private equity firm Arcapita bought Jill Acquisitions from Golden Gate. In 2011, it acquired California Pizza Kitchen. On October 9, 2012, Wolverine World Wide, Golden Gate Capital and Blum Capital acquired Collective Brands. On July 28, 2014, Golden Gate completed the purchase of Red Lobster from Darden Restaurants, for $2.1 billion. In November 2014, Golden Gate Capital agreed to buy Angus Chemical Co. and its Sterlington plant from Dow Chemical, for $1.215 billion. In May 2015, the company backed Philip P. Gass and Kostas Cheliotis with $750 million for a reinsurance company. That month, Golden Gate Capital, with Arcapita Bank, also sold its J.Jill retail holdings to TowerBrook. In January 2017, the company purchased the Bob Evans Restaurants division from Bob Evans Farms, for $565 million. On August 8, 2017, Golden Gate Capital finalized the acquisition of Neustar, Inc., previously NSR, a publicly traded company. In June 2018, the company announced that it had established a new operating company, PSEB Group. PSEB is composed of two Golden Gate portfolio companies: Eddie Bauer and Pacific Sunwear of California. In November 2018, Golden Gate Capital announced that it had acquired Vector Solutions of Tampa from Providence Equity Partners, for an undisclosed sum. In September 2019, Golden Gate Capital acquired autism and childhood behavioral health services provider, Invo Holding, LLC, for an undisclosed amount. In November 2019, the firm sold Hillstone Environmental Partners, which it had co-founded in 2015 as a de novo investment, in a partnership with Hillstone CEO and co-founder Jay Parkinson. NGL Energy Partners acquired the Central Delaware Basin water pipeline and disposal infrastructure company for approximately USD $600 million.
