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Advent International

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Advent International Corporation
Company typePrivate
IndustryPrivate equity
Founded1984; 40 years ago (1984)
FounderPeter Brooke
HeadquartersBoston, Massachusetts, United States
ProductsPrivate equity funds, buyouts
AUM$92 billion (2023)[1]
Number of employees
475+
Websiteadventinternational.com

Advent International Corporation is an American global private equity firm focused on buyouts of companies in Western and Central Europe, North America, Latin America and Asia. The firm focuses on international buyouts, growth and strategic restructuring in five core sectors.

Since its inception in 1984, Advent has invested $56 billion in private equity capital[2] and, through its buyout programs, has completed more than 375 transactions in 42 countries.[3]

Advent operates from 14 offices in 11 countries, with affiliates in additional countries, employs over 240 investment professionals,[4] and has around $92 billion in assets under management as of 2023.[1]

In June 2024, Advent was ranked eighth in Private Equity International's PEI 300 ranking of the largest private equity firms in the world.[5][6]

History

[edit]
History of private equity
and venture capital
Early history
(origins of modern private equity)
The 1980s
(leveraged buyout boom)
The 1990s
(leveraged buyout and the venture capital bubble)
The 2000s
(dot-com bubble to the credit crunch)
The 2010s
(expansion)
The 2020s
(COVID-19 recession)

Advent is a Boston, Massachusetts spin-out from TA Associates by Peter Brooke.[7] Brooke had founded TA Associates in 1968, after having expanded the venture capital operations of TA's parent Tucker Anthony & R.L. Day. In 1985, Advent raised its first fund – a $14 million corporate venture capital program for Nabisco. In 1987, the firm raised the $225 million International Network Fund, its first institutional private equity fund. The firm raised its first European fund in 1989, with the $231 million European Special Situations Fund and opened its London office.

Advent continued its expansion in the 1990s, opening offices in Frankfurt and Milan and merging with UK-based Trinity Capital Partners. In 1994, Advent completed fundraising for the first of its flagship series of funds, Advent Global Private Equity (GPE) II, with $415 million. In 1996, Advent expanded into Latin America raising a dedicated Advent Latin American Private Equity Fund and opening offices in Buenos Aires, Mexico City, and São Paulo.

Advent crossed the billion dollar mark in 1997, with the raising of the $1.2 billion Advent Global Private Equity (GPE) III, and in the last few years of the 1990s, Advent raised additional sector funds focused on media and communications as well as healthcare and life sciences. Advent's founder, Peter Brooke, stepped down as the firm's CEO in 1996, but remained active as the company's chairman.[8]

Through the 2000s, Advent's expansion accelerated as the firm raised additional funds for its various fund families and opening new offices in Europe and Asia. Advent's sixth global private equity fund, raised in 2008, closed with €6.6 billion of investor commitments and the firm raised an additional €1 billion for investments in central Europe.[9][10]

In March 2016, Advent raised its eighth global private equity fund with $13 billion of investor commitments.[11]

Investments

[edit]

Advent began to invest in Poland in 1995. In total, they have made 13 investments in Poland across multiple sectors, including construction materials, food and beverages, financial services, rail equipment, construction chemicals and the cable industry.[12]

It acquired the British variety store chain Poundland in 2002, and has investments in the Fat Face clothing brand and extended warranty firm Domestic & General.[13]

In 2004, Advent-owned fund Viva Ventures bought the Bulgarian state-owned telecoms monopoly Bulgarian Telecommunications Company (now Vivacom). The company was sold to AIG in 2007.

In 2005, founder of lululemon athletica Chip Wilson partnered with Advent and Highland Capital Partners to sell a 48% minority stake in lululemon athletica.[14]

Advent bought a majority ownership of Bradco Supply, a leading distributor of building products in 2008.[15]

It has acquired a number of companies in Central and Eastern Europe through its dedicated regional funds. These include Romanian Ceramica IASI, one of Romania’s leading ceramic bricks and clay roof tiles producers, Bolix, a leading Polish producer of construction chemicals, Dufa Deutek, Romania’s largest decorative paints producer, and LaborMed Pharma, which manufactures and distributes generic pharmaceuticals primarily for cardiovascular and central nervous system ailments.[16]

In 2007, its Asia affiliate Seavi Advent led the restructuring of Yangzijiang Shipbuilding, one of China's largest privately owned shipbuilders, and successfully listed the company on the Singapore Exchange; making it one of the largest IPOs by a foreign company in Singapore.[17]

In March 2009, Advent announced the acquisition of a controlling interest in Fifth Third Processing Solutions, the payment processing business of Fifth Third Bank in a $2.35 billion transaction. The transaction represented one of the largest private equity transactions completed in 2009, amidst the Financial crisis of 2007–2010.[18] The deal was completed in June 2009.

In November 2009, it announced a public tender offer to acquire 100% of Wydawnictwa Szkolne i Pedagogiczne S.A. (WSiP), the largest Polish educational publisher.[19]

In April 2010, it took over the company DFS in the United Kingdom.[20] In August 2010, Advent International was credited with spawning the takeover of Mexicana Airlines by an outside investor group. Advent International has no equity investment stakes in the takeover according to published sources.[21]

In 2011, it acquired Mondo Minerals, the second largest global talc producer[22] and British mental health care provider, Priory Group,[23] best known for providing mental health treatments to celebrities[24] such as Eric Clapton[25] and Johnny Depp.[26]

In August 2011, it acquired Bojangles' Famous Chicken 'n Biscuits, a regional chain of quick-service restaurants based in Charlotte, North Carolina.

As of October 1, 2013, Advent had reached agreement with Vista Equity Partners to acquire P2 Energy Solutions.

On August 7, 2014, lululemon athletica inc. and Wilson facilitated Advent's re-engagement in lululemon by selling 13.85% ownership in the company to Advent for approximately $845 million.[27] The transaction received the full support of the lululemon Board of Directors and changes the board dynamic. Advent Managing Partner David M. Mussafer and Managing Director Steven J. Collins will be appointed to lululemon's Board of Directors, expanding the Board from 10 to 12 members. Mr. Mussafer will now share Chairman responsibilities with Michael Casey. Lululemon will also engage an independent expert to evaluate and make recommendations regarding the lululemon Board's committees, policies and procedures over the course of 90 days following the completion of Advent's stock purchase.[28][29]

In November 2014, Advent completed a new $2.1 billion private equity fund, its Advent Latin American Private Equity Fund VI, thought to be the largest ever raised for Latin America.[30] Advent International also acquired a significant minority ownership of Noosa Yoghurt, a Bellevue-based company, for an undisclosed amount.[31]

Between 2016 and 2018, it acquired business-to-business distributors of industrial supplies Brammer and IPH Group to create Rubix.[32][33]

In February 2017, it announced that it would partner with CCC Information Services as their sole equity partner, buying out Leonard Green & Partners and TPG Capital.[34]

On May 31, 2017, Advent and Bpifrance completed the acquisition of Safran Identity & Security (Morpho, now renamed IDEMIA), after receiving clearance from antitrust and regulatory authorities. "[35] Didier Lamouche was appointed President of the Executive Board and Marwan Lahoud Chairman of the Supervisory Board of OT-MORPHO. This acquisition raised a series of concerns:

  • Various civil rights organizations have criticized the government's contracts with IDEMIA, expressing concerns about sharing sensitive biometric data with a private and unregulated third-party company.[36][37]
  • Researchers have also found that facial verification and identification algorithms, including IDEMIA's algorithm specifically, exhibit systematic racial and gender bias.[38]
  • Another concern is the presence of Marwan Lahoud as a President or member of the board of different entities of the group, since 2017.[39]
  • Marwan Lahoud abruptly left Airbus (former EADS) in February 2017, without notice,[40] and is deeply involved in the scandal of corruption which hit Airbus. "Airbus ran 'massive' bribery scheme to win orders" (title of the article in the Financial Times of January 31, 2020[41] in which he is mentioned, with a photo of him with this title: "Marwan Lahoud, who led the strategy organization and marketing of Airbus, SMO, a division dedicated to securing sales in emerging markets and at the heart of a catalog of offenses."). In January 2020, the French press announced that the French, British and American courts had validated the agreements made earlier this week by Airbus and the French National Financial Prosecutor's Office (PNF), the British Serious Fraud Office (SFO) and the Department of Justice ( DOJ) in the United States, under which the European group AIRBUS recognises the fraud and briberies, and undertakes to pay fines totalling 3.6 billion euros: 2.08 billion in France as part of a public interest legal agreement (CJIP ), 984 million in the United Kingdom and 526 million in the United States.[42]
    Today dissolved, the group's unit called Strategy and Marketing Organization (SMO), led by Marwan Lahoud, was at the heart of the matter.[41]
    Almost all the articles published on these agreements underline that the ex-leaders may be worried within the framework of a preliminary investigation still in progress.[43]

In October 2018, Advent acquired the pharmaceutical company Zentiva, previously owned by Sanofi.[44][45]

On December 20, 2019, the UK government approved Advent's £4 billion takeover of defense supplier Cobham Plc.[46] On July 24, 2019, the firm announced the 165p in cash for each Cobham shares, takeover of the firm.[47] On September 16, 2019, at a shareholders' meeting in London, the proposed takeover deal was approved with 93% voting in favor of the deal, surpassing the requisite 75% votes.[48] The takeover was controversial, with opponents of the deal, such as the former First Sea Lord and Royal Navy chief Admiral Lord West of Spithead expressing fears.[49] The founding family of Cobham were also vocal opponents of the takeover.[50][51] These oppositions for the takeover triggered an investigation by the Competition & Markets Authority, on the national security implications of the transaction, which led to the delay in the regulatory approval of the deal.[52]

The company is following up its $3.3 billion acquisition of Evonik Industries's plastics division.[53]

On March 5, 2021, Advent completed the acquisition of Global Connect business (NielsenIQ, the former ACNielsen) of Nielsen Holdings.[54]

On December 16, 2022, the geospatial intelligence company Maxar Technologies announced it had been acquired by Advent International for $6.4 billion.[55][56]

Investment funds

[edit]
Fund Vintage Year Capital ($m)
Advent Global Private Equity (GPE) VII[57] 2012 $10,800
Advent Latin American Private Equity Fund VI[58][59] 2014 $2,100
Advent Global Private Equity (GPE) VIII[60] 2016 $13,000
Advent Global Technology[61][62] 2019 $2,000
Advent Global Private Equity (GPE) IX[61][63] 2019 $17,500
Advent Latin American Private Equity Fund VII[61][62] 2020 $2,000
Advent Global Technology II[61][64] 2021 $4,000
Advent Global Private Equity (GPE) X[65] 2022 $25,000

References

[edit]
  1. ^ a b Thomas, Lauren; Cooper, Laura (January 2, 2024). "Fisher Investments in Sale Talks". The Wall Street Journal.
  2. ^ "Advent hires advisers to expand investments in loyalty plans". Reuters. Archived from the original on November 17, 2015. Retrieved August 27, 2015.
  3. ^ "About Advent - Advent International". Advent International. Retrieved May 23, 2018.
  4. ^ "Our list of investments". adventinternational.com. Advent international. Retrieved July 16, 2018.
  5. ^ Beer, Helen de (June 3, 2024). "Blackstone holds PEI 300 top spot". Private Equity International. Retrieved June 4, 2024.
  6. ^ "PEI 300 | The Largest Private Equity Firms in the World". Private Equity International. June 3, 2024. Retrieved June 4, 2024.
  7. ^ Gara, Antoine. "Meet Private Equity's Quiet Corporate Turnaround Artist". Forbes. Retrieved February 26, 2023.
  8. ^ "Peter Brooke | Brooke Private Equity Associates". brookepea.com. Archived from the original on October 2, 2015. Retrieved October 1, 2015.
  9. ^ Advent closes €6.6bn upper mid-market buy-out fund Archived September 3, 2009, at the Wayback Machine. AltAssets, April 7, 2008.
  10. ^ Advent closes fourth CEE fund on €1bn hard cap Archived September 3, 2009, at the Wayback Machine. AltAssets, April 17, 2008
  11. ^ Langworth, Hannah. "Real Deals". Retrieved March 22, 2016.
  12. ^ "Advent International Homepage". Archived from the original on July 18, 2013.
  13. ^ Julia Finch, 'How one-price-fits-all is making this man Britain's most cheerful retailer' (6.12.2008) The Guardian
  14. ^ "Advent International". Archived from the original on August 14, 2014. Retrieved August 20, 2014.
  15. ^ Venture Capital Firm Buys Bradco Supply Archived September 3, 2009, at the Wayback Machine. PROSALES Information Service Publication date: July 15, 2008
  16. ^ "Advent International investments in Central and Eastern Europe". Investment Intelligence s.r.o. Archived from the original on September 29, 2011. Retrieved July 20, 2009.
  17. ^ Yangzijiang shares soar up to 45 pct in S'pore debut. Reuters News, April 17, 2007
  18. ^ Fifth Third to Sell 51% Stake in Its Payment Unit to Advent. Wall Street Journal, March 30, 2009
  19. ^ Advent Press Release Archived December 7, 2010, at the Wayback Machine. November 6, 2009
  20. ^ "DFS sold to private equity firm". April 23, 2010 – via news.bbc.co.uk.
  21. ^ "CORRECTED - UPDATE 1-Mexican group buys stake in airline Mexicana-Advent", Reuters, August 21, 2010, retrieved February 26, 2014
  22. ^ "RLPC-Advent lines up loans for Mondo Minerals LBO-bankers". Reuters. July 6, 2011. Archived from the original on December 12, 2013.
  23. ^ "Advent buys The Priory for £925m". The Daily Telegraph. January 18, 2011. Retrieved May 27, 2012.
  24. ^ "The Priory offers counselling to pupils". The Daily Telegraph. September 11, 2009. Retrieved May 26, 2012.
  25. ^ "The Priory: facts and figures". The Observer. April 15, 2007. Retrieved May 27, 2012.
  26. ^ "The celebrity guide to detox: Pass out, check in, and dry out". The Independent. January 6, 2007. Archived from the original on January 4, 2010. Retrieved May 26, 2012.
  27. ^ "lululemon Founder Chip Wilson Votes Against Re-Election of Outside Directors". August 7, 2014. Archived from the original on September 6, 2015. Retrieved August 20, 2014.
  28. ^ "Archived copy" (PDF). Archived from the original (PDF) on August 13, 2014. Retrieved August 20, 2014.{{cite web}}: CS1 maint: archived copy as title (link)
  29. ^ "Power shifts at Lululemon as Chip Wilson seals deal". Globe and Mail. June 11, 2014.
  30. ^ Sreeharsha, Vinod (November 6, 2014). "Investment Firm Raises New $2.1 Billion Fund for Latin America". DealBook.
  31. ^ "Noosa Yoghurt sells to private equity firm". Colorodoan. Retrieved November 24, 2014.
  32. ^ "Brammer & IPH Complete Merger, Creating $2.6B European MRO Distributor". IndDist. September 25, 2017. Retrieved September 25, 2017.
  33. ^ "Europe's largest MRO firm, IPH Brammer, is reborn as Rubix". DrivesNControls. June 26, 2018. Retrieved June 26, 2018.
  34. ^ "CCC Begins Next Phase of Innovation with Advent International". PRWeb. Retrieved February 28, 2017.
  35. ^ "Advent International and Bpifrance complete the acquisition of Safran Identity & Security (Morpho) and create OT-MORPHO, a world leader in identification and digital security technologies". Advent International. May 31, 2017. Retrieved September 21, 2020.
  36. ^ "Major face surveillance company releases dystopian tracking tool". ACLU Massachusetts. June 24, 2019. Retrieved September 21, 2020.
  37. ^ Lynch, Jennifer (November 9, 2017). "TSA Plans to Use Face Recognition to Track Americans Through Airports". Electronic Frontier Foundation. Retrieved September 21, 2020.
  38. ^ "Federal study finds racial bias of many facial-recognition systems". The Seattle Times. December 19, 2019. Retrieved September 21, 2020.
  39. ^ "Qu'en est-il de la société IDEMIA, ayant obtenu le marché des radars-tourelles ?" (PDF).
  40. ^ "Le départ de Marwan Lahoud d'Airbus suscite des interrogations". Les Echos (in French). February 7, 2017. Retrieved September 21, 2020.
  41. ^ a b "Airbus ran 'massive' bribery scheme to win orders". Financial Times. January 31, 2020. Retrieved September 21, 2020.
  42. ^ Mediapart, La rédaction de (January 28, 2020). "Airbus agrees deal on bribery investigations in UK, US and France". Mediapart. Retrieved September 21, 2020.
  43. ^ e.V, Transparency International. "Airbus bribery investigation highlights power of international cooperation in tackling corruption". www.transparency.org. Retrieved February 29, 2020
  44. ^ "Acquisition of Sanofi's Zentiva is Completed by Advent International". PharmTech. October 2018.
  45. ^ "Press Release" (PDF).
  46. ^ "Government update on the proposed acquisition of Cobham PLC by Advent International". GOV.UK. Retrieved December 21, 2019.
  47. ^ Farrell, Sean (July 25, 2019). "US private equity group snaps up Cobham in £4bn deal". The Guardian. ISSN 0261-3077. Retrieved December 23, 2019.
  48. ^ Pfeifer, Sylvia (September 16, 2019). "Cobham chief's future in doubt as investors approve takeover". Financial Times. Retrieved December 23, 2019.
  49. ^ "PM dismisses concerns over defence firm sale". December 21, 2019. Retrieved December 21, 2019.
  50. ^ "UK approves defence company's £4bn US takeover". December 21, 2019. Retrieved December 22, 2019.
  51. ^ "Family behind Dorset defence giant Cobham slams government for approving £4billion US takeover". Bournemouth Echo. December 21, 2019. Retrieved December 22, 2019.
  52. ^ "National security fears threaten defence takeover". September 18, 2019. Retrieved December 22, 2019.
  53. ^ Noel, Andrew Marc; Weiss, Richard (January 28, 2020). "Advent's $3.3 Billion Roehm Deal Looks to Rekindle Chemical Icon". Bloomberg.
  54. ^ "Nielsen Announces Completion of Sale Of Global Connect Business to Advent International". Nielsen Holdings. March 5, 2021. Retrieved August 30, 2024.
  55. ^ Sheetz, Michael (December 16, 2022). "Space company Maxar agrees to go private in $6.4 billion deal". CNBC.
  56. ^ Gottfried, Miriam (December 16, 2022). "Advent to Buy Maxar Technologies for About $4 Billion". The Wall Street Journal.
  57. ^ "Advent International raises EUR8.5 billion (USD10.8 billion) for global private equity fund". Private Equity Wire. November 12, 2012. Retrieved August 7, 2024.
  58. ^ "Advent International raises largest private equity fund dedicated to Latin America". Private Equity Wire. November 7, 2014. Retrieved August 7, 2024.
  59. ^ Markham, Isobel (November 6, 2014). "Advent raises $2.1bn for Latin America". Private Equity International. Retrieved August 7, 2024.
  60. ^ Ramsey, Andrea (June 11, 2019). "Advent International raises $17.5 billion for ninth global private equity fund". Advent International. Retrieved August 8, 2024.
  61. ^ a b c d "Advent International Portfolio Investments, Advent International Funds, Advent International Exits". www.cbinsights.com. Retrieved August 7, 2024.
  62. ^ a b Mandl, Carolina (September 29, 2020). "Advent raises $2 billion fund foSeptember 29, 2020r Latin American company bets". Reuters. Retrieved August 7, 2024.
  63. ^ "Advent International set to secure US LP commitments | Unquote". www.unquote.com. March 15, 2019. Retrieved August 8, 2024.
  64. ^ "Advent Tech II closes on USD 4bn | Unquote". www.unquote.com. December 9, 2021. Retrieved August 7, 2024.
  65. ^ "Advent defies fundraising headwinds to close world's second-largest PE fund". Private Equity International. May 24, 2022. Retrieved August 7, 2024.
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