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Blum Capital Partners, L.P.
Company typePrivate
IndustryPrivate equity
Founded1975; 49 years ago (1975)
FounderRichard C. Blum
HeadquartersSan Francisco, California
ProductsLeveraged buyout, PIPE, growth capital
Total assets$4.5 billion[1]
Number of employees
over 30
Websitewww.blumcapital.com

Blum Capital Partners, L.P., also known as Blum Capital,[2] is an American private equity firm founded in 1975 by Richard C. Blum. The firm is headquartered in San Francisco, California. It is focused on leveraged buyout, growth capital and PIPE investments in small cap and middle-market companies. Blum Capital became known for pioneering a hybrid strategy for investing in public companies, combining private equity and strategic block investment.

History

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Prior to founding his eponymous firm, Richard C. Blum worked at Sutro & Co., an investment management and brokerage company.[3] While working at Sutro & Co., he led a partnership that acquired the struggling Ringling Bros. and Barnum & Bailey Circus in 1967, for $8 million.[3][4][5] The Circus was then sold to Mattel Inc. for $50 million, in 1971.[4]

Blum founded Blum Capital in 1975.[6] As of 2011, Blum Capital managed $2.73 billion in stocks and investments.[7]

Significant investments for Blum Capital have come from Fair Isaac,[8] Lenovo,[9] DHL Airways,[10] and CB Richard Ellis.[11][12][13]

In 1994, Blum Capital entered into a joint venture, Newbridge Capital, with Texas Pacific Group and ACON Investments to invest in Asia and Latin America.[14]

Investments

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Following the 2007–08 financial crisis, the firm sustained major financial losses in its real estate investments. Its investment into CB Richard Ellis Group (CBRE)—into which Blum Capital had invested over the previous 30 years, helping to take the company public—decreased by about 37% amid "global economic concerns that impacted real estate markets".[6]

In June 2011, Blum Capital had a $1.87 billion stock portfolio, which was decreased 36%, to about $1.19 billion, by November 2011. Six of the firm's seven-largest public stock investments had also lost "at least 22% of their value" in the same five-month period.[6]

On October 9, 2012, Wolverine World Wide, Golden Gate Capital and Blum Capital took over Collective Brands.[15]

On March 26, 2015, it was announced that Blum Capital and FRHI Hotels & Resorts will acquire 88% of the shares of the Grand del Mar Resort in San Diego.[16][17]

References

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  1. ^ Institutional private equity funds raised since 1998. Source: Preqin
  2. ^ "Limited Partner Login". blumcapital.com. Retrieved June 2, 2020.
  3. ^ a b Groves, Martha (1990-05-27). "The Man Behind the Woman Who Would Be Governor : Politics: Dianne Feinstein's husband, Richard Blum, is a shrewd businessman, a friend of the famous, with a 'Lt. Columbo style' and a passion for distance running and Tibetan treks". Los Angeles Times. Retrieved 2020-08-26.
  4. ^ a b "Feld Family Buys Ringling Bros". The New York Times. 1982-03-19. ISSN 0362-4331. Retrieved 2020-08-26.
  5. ^ Paddock, Richard (2007-03-21). "Sen. Feinstein's husband takes on a starring role". Los Angeles Times. Retrieved 2020-08-26.
  6. ^ a b c Eder, Steve; Zuckerman, Gregory (November 11, 2011). "Seeing Winners Become Losers". The Wall Street Journal. Retrieved May 29, 2020.
  7. ^ Zuckerman, Gregory; Eder, Steve (2011-11-11). "Seeing Winners Become Losers". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-08-26.
  8. ^ Blum buys larger stake in Fair, Isaac. San Francisco Business Times, October 10, 2000
  9. ^ Hardware: Equity Stake In Lenovo; The New York Times, March 31, 2005
  10. ^ DEUTSCHE POST TO SELL STAKE IN DHL AIRWAYS; The New York Times; May 22, 2003.
  11. ^ CB Richard Ellis to Expand In New York With Acquisition; The New York Times, February 19, 2003.
  12. ^ Investors to Buy Real Estate Company; The New York Times, February 26, 2001.
  13. ^ INVESTORS SEEK REMAINING SHARES OF CB RICHARD ELLIS; The New York Times, November 14, 2000.
  14. ^ Tucker, Sundeep (13 March 2006). "Texas Pacific acquires Myer stores $1bn". Financial Times. Retrieved 2020-08-26.
  15. ^ Bomey, Nathan; McCoy, Kevin (29 April 2019). "As Payless wades through bankruptcy again, creditors say hedge fund may be to blame". USA TODAY. Retrieved 2020-08-26.
  16. ^ Weisberg, Lori (26 March 2015). "Grand Del Mar hotel to be sold". U-T San Diego. Retrieved 15 April 2015.
  17. ^ admin. "Blum Capital & Fairmont Acquire San Diego, CA's Grand Del Mar; To Rebrand as Fairmont Grand Del Mar". Hotel-Online. Retrieved 2020-04-07.
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