Providence Equity Partners LLC is an American global private equity investment firm focused on media, communications, education and information investments. The firm specializes in leveraged buyout transactions as well as growth capital investments and has invested in more than 140 companies globally since its inception in 1989. The firm manages funds with over $45 billion in commitments, making it a large global player in the private equity industry. The firm also invested in credit funds through its Capital Markets group and affiliate, Benefit Street Partners. Benefit Street Partners closed on a $1.75 billion middle marketdirect lending fund in April 2014. Providence sold Benefit Street Partners in 2018. Providence was one of the principal pioneers of a sector-based approach to private equity investing. The firm’s sixth fund, Providence Equity Partners VI, closed on $12 billion in 2007, making it the largest sector-focused private equity fund ever raised. Providence is headquartered in Providence, Rhode Island with five additional offices in New York, London, Hong Kong, Beijing and New Delhi.
History
Providence is led by Founder and CEO Jonathan M. Nelson. Paul J. Salem serves as Senior Managing Director Emeritus. The firm raises investment funds from a broad array of institutional investors, including pension funds, endowments, sovereign wealth funds, financial institutions, insurance companies, fund of funds, and high-net-worth individuals. Providence partners with companies across different stages in their development, from growth capital and complex recapitalizations of family-owned businesses to large buyouts and take-privates. The firm targets equity investments of $150 million to $800 million and can employ a variety of financing structures. Providence prefers to lead its investments, serve on company boards, and work collaboratively with company management. In 2008, Providence hired Thomas Gahan as president of the firm’s new capital markets group. Prior to joining Providence, Mr. Gahan was head of Deutsche Bank’s corporate and investment banking in the Americas and chief executive officer of Deutsche Bank Securities. The credit platform was sold to Franklin Templeton Investments in October 2018. Providence’s investments have included AutoTrader.com Group, Blackboard Inc., Conversica, eircom, Hulu, Kabel Deutschland, MLS Media, NEW Asurion, Bluestone Television, Newport Television, Univision, VoiceStream, Warner Music Group, Western Wireless, and World Triathlon Corporation, YES Network, ZeniMax Media and TopGolf. Since 2010, significant investments by the firm include RentPath, Ambassador Theatre Group, Miller Heiman, Learfield Communications, The Chernin Group, GLM, UFO Moviez, Study Group, and Abacus Data Systems. Providence’s recent exits by sale or IPO include iQivi, Hulu, YES Network, Decision Recourses, MobileServ, Bresnan Communications, and Kabel Deutschland. In March 2013, Providence and the National Football League formed a global partnership to invest primarily in sports and entertainment related media assets. In September 2012, Providence sold a less than 10% stake in the firm to Florida’s state pension system and a sovereign wealth fund. In February 2015, Providence's $800 million stake in security screener Altegrity was wiped out when the security company was accused of fraud and filed for bankruptcy. This followed a series of other expensive losses that Providence blamed on investments outside of its expertise made during the peak of the 2007 and 2008 private equity boom. In March 2017, Modern Times Group sold its telecommunication businesses in the Baltic states to Providence Equity Partners. In October 2017, the transaction was completed. The newly-acquired companies were united and operate under the All Media Baltics company name. In April 2019, MasMovil agreed to repurchase its convertible bond from Providence Equity. Providence remains a shareholder in the company. In September 2019, Providence Strategic Growth collected $2 billion for its fourth fund.
Senior Advisors
Senior Advisors that work with the firm on new investment opportunities and certain of the firm’s existing investments, include:
