M&A Deal Summary

Crescent Capital Partners, The Carlyle Group, TPG and Hellman & Friedman Acquire LPL Financial

On December 28, 2005, private equity firms Crescent Capital Partners, The Carlyle Group, TPG and Hellman & Friedman acquired financial services company LPL Financial for 2.5B USD

Acquisition Highlights
  • This is Crescent Capital Partners’ 2nd, The Carlyle Group’s 7th, TPG’s 3rd and Hellman & Friedman’s 3rd transaction in the Financial Services sector.
  • This is Crescent Capital Partners’ , The Carlyle Group’s 31st, TPG’s 31st and Hellman & Friedman’s 15th largest (disclosed) transaction.
  • This is Crescent Capital Partners’ 1st, The Carlyle Group’s 121st, TPG’s 50th and Hellman & Friedman’s 15th transaction in the United States.
  • This is Crescent Capital Partners’ 1st, The Carlyle Group’s 24th, TPG’s 16th and Hellman & Friedman’s 4th transaction in California.
Investment Fate
  • LPL Financial went public in 2010.

M&A Deal Summary

Date 2005-12-28
Target LPL Financial
Sector Financial Services
Buyer(s) Crescent Capital Partners
The Carlyle Group
TPG
Hellman & Friedman
Deal Type Buyout (LBO, MBO, MBI)
Deal Value 2.5B USD

Target

LPL Financial

San Diego, California, United States
website
LPL Financial is the exclusive provider of investment advisory, marketing, administrative, distribution and information systems services to the largest independent financial advisor network in the United States. LPL Financial was founded in 1989 and is based in San Diego, California.

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Buyer(S) 4

Buyer

Crescent Capital Partners

Sydney, Australia

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 2000
PE ASSETS 2.5B AUD
Size Large
Type Sector Agnostic
DESCRIPTION

Crescent Capital Partners is a private equity firm focused on mid-sized company investments in Australia and New Zealand. The Firm does not have any sector preferences and looks to be a 'hands on' investor in assisting portfolio companies with strategy and operation support. Crescent Capital is based in Sydney.


DEAL STATS #
Overall 5 of 15
Sector (Financial Services) 2 of 2
Type (Buyout (LBO, MBO, MBI)) 4 of 9
State (California) 1 of 1
Country (United States) 1 of 3
Year (2005) 3 of 3
Size (of disclosed) 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-07-01 Valley Longwall International Pty

Sydney, Australia

Specialist provider of underground coal mining equipment and services.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-09-01 Double E

West Bridgewater, Massachusetts, United States

Double E is a manufacturer of highly-engineered components for web converting applications. The company's product offering includes critical wear components such as chucks, brakes, shafts, slitters, web guides, core cutters, and roll movers. These products secure, straighten, apply tension, cut, and move rolled raw materials through continuous manufacturing processes. Double E was established in 1972 and is headquartered in West Bridgewater, Massachusetts.

Buy -
Buyer

The Carlyle Group

Washington, District of Columbia, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1987
PE ASSETS 376.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
Carlyle's corporate headquarters on Pennsylvania Ave. in Washington, DC.
Carlyle's corporate headquarters on Pennsylvania Ave. in Washington, DC.

The Carlyle Group is a global investment firm that pursues private equity, credit, and real estate investments worldwide. Carlyle's private equity practice practice pursues buyouts, strategic minority equity investments, equity private placements, consolidations and buildups, and growth capital financings. With offices in 19 countries, Carlyle can easily target opportunities throughout North America, Europe, Asia, Australia, the Middle East/North Africa and Latin America. Broad sectors of interest include aerospace, defense, automotive and transportation, consumer, retail, energy and power, financial services, healthcare, industrial, infrastructure, technology services, business services, telecommunications and media. The Carlyle Group was formed in 1987 and is based in Washington DC.


DEAL STATS #
Overall 209 of 695
Sector (Financial Services) 7 of 45
Type (Buyout (LBO, MBO, MBI)) 93 of 202
State (California) 24 of 50
Country (United States) 121 of 336
Year (2005) 32 of 32
Size (of disclosed) 31 of 133
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-19 Taiwan Broadband Communications

Taipei, Taiwan

Taiwan Broadband Communications Co. Ltd. was Taiwan's first professionally operated multiple-systems operator and was the third largest cable television MSO in Taiwan.

Sell AU$1.2B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-01-01 Vidéotron Telecom

Montreal, Quebec, Canada

Vidéotron Telecom Ltée was a facilities-based competitive local exchange carrier providing local, long distance, Internet access and data services to businesses in the province of Quebec, Canada.

Sell -
Buyer

TPG

Fort Worth, Texas, United States

Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1992
PE ASSETS 137.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

TPG Capital is a global, mega-sized private investment firm that manages a family of funds focused on private equity, real estate, venture capital, public equity and debt investing. TPG invests in opportunities across a broad range of industries and geographies. TPG generally seeks to invest in established businesses that can benefit from the Firm's operational experience and connections. Industries of interest include consumer, retail, healthcare, industrials, digital media, natural resources, energy, real estate, technology, and software. TPG was formerly known as Texas Pacific Group and was originally established in 1992 by David Bonderman, James Coulter and William Price. The Firm is based in Forth Worth, Texas with additional offices in Europe, Asia, and Australia.


DEAL STATS #
Overall 69 of 401
Sector (Financial Services) 3 of 25
Type (Buyout (LBO, MBO, MBI)) 14 of 43
State (California) 16 of 82
Country (United States) 50 of 269
Year (2005) 15 of 15
Size (of disclosed) 31 of 100
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-18 Ariel Re

Hamilton, Bermuda

Ariel Re is a reinsurance company based in Bermuda that underwrites a global portfolio of insurance and reinsurance business through offices in London, Bermuda, Atlanta and Kansas City. Ariel Re was founded in 2005 and is based in Hamilton, Bermuda.

Buy $1.0B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-01-01 China Grand Automotive Service

Shanghai, China

China Grand Auto is one of the three largest auto dealership networks in China with over 10 "4S" dealerships (vehicle Sales, Spare parts, Service and customer Survey) and over 10 showroom facilities.

Buy -
Buyer

Hellman & Friedman

San Francisco, California, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1984
PE ASSETS 50.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Hellman & Friedman (H&F) is a large private equity firm on the West Coast of the US. H&F focuses on control and minority investments in a variety of transaction structures and will consider opportunities across the US and Europe. H&F seeks buyouts and business in need of restructurings that operate in defensible markets with predictable revenue and earnings growth. Target sectors include financial services, healthcare, indusrial, energy, insurance, media, marketing, professional services, software, and information services. H&F's target equity investment size is $300 million to $1 billion. Hellman & Friedman was formed in 1984 and has offices in San Francisco, New York City, and London.


DEAL STATS #
Overall 20 of 87
Sector (Financial Services) 3 of 12
Type (Buyout (LBO, MBO, MBI)) 4 of 15
State (California) 4 of 11
Country (United States) 15 of 60
Year (2005) 3 of 3
Size (of disclosed) 15 of 39
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-11-25 Formula One World Championship

Knightsbridge, United Kingdom

Formula One World Championship Ltd. is an organizer of racing championship, including the right to stage and promote the events, to sell broadcast footage (via Formula One Administration, and to offer sponsorship and hospitality packages (via APM and Allsport Management).

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-02-02 NRG

Houston, Texas, United States

NRG is a wholesale power generation company. NRG engages in the ownership, development, construction, and operation of power generation facilities; the transacting in and trading of fuel and transportation services; and the trading of energy, capacity and related products in the US and select international markets. NRG was formed in 1989 and is based in Houston, Texas.

Sell USD4.4B