CT private equity firm sells two companies for nearly $2 billion - Top World News Today (2024)

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CT private equity firm sells two companies for nearly $2 billion - Top World News Today? ›

Managing Partner Manu Bettegowda, left, Chairman and CEO Rob Morris, center, and Partner Mike Horgan gather in Olympus Partners' offices at 1 Station Place in Stamford, Conn., on Monday, Oct. 16, 2023. The private equity firm has announced the sale of two portfolio companies for a total of nearly $2 billion.

Once a company is acquired by a private equity firm, several immediate changes are typically implemented to drive transformation and set the stage for future growth. These changes encompass management restructuring and financial restructuring.

Olympus Partners is a private equity firm focused on providing equity capital for middle market buyouts and for companies needing capital for expansion. Olympus manages funds in excess of $8.5 billion mainly on behalf of corporate pension funds, endowment funds and state-sponsored retirement programs.

Shareholders receive their share of the sale proceeds based on their stake in the company. The process may also include paying any taxes or legal fees incurred during the sale process.

Private equity owners make money by buying companies they think have value and can be improved. They improve the company or break it up and sell its parts, which can generate even more profits.

Citadel LLC is one of the largest hedge funds based in the U.S., with approximately $92.46 billion in total assets under management as of Sept. 30, 2023. Citadel has generated roughly $74 billion in total gains since its inception in 1990, making it the most successful hedge fund of all time.

The Pegasus funds were the proprietary fund family of First Chicago NBD Corporation. It had 29 funds and $23.6 billion in assets.

About New Mountain Capital

New Mountain Capital seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies.

When a private equity firm acquires a company, there is a possibility of layoffs and workforce reductions as part of their effort to streamline operations, cut costs, and improve overall efficiency.

A buyout is the process whereby a management team, which may be the existing team or one assembled specifically for the purpose of the buyout, acquires a business (Target) from the current owners of Target using equity finance from a private equity provider and debt finance from financial institutions.

What happens to stock when a company is bought by a private company? ›

If it's an “all-cash” deal, your shares will vanish from your portfolio upon closing, replaced by the specified cash value. Conversely, if it's an “all-stock” deal, your shares will be swapped for shares of the acquiring company.

When a public company goes private, it's delisted from the stock market and is no longer owned by its shareholders. Control instead goes to an individual or a select group of private shareholders. There are many reasons why companies choose to go private.