Welsh, Carson, Anderson & Stowe

Welsh, Carson, Anderson & Stowe
Limited liability company
Industry Private equity
Founded 1979
Founder Patrick Welsh, Russell Carson, Bruce Anderson, Rick Stowe
Headquarters New York, New York, United States
Key people
 Jonathan Rather (General Partner & CFO)
Fran Higgins (Managing Director of Investor Relations)
Eileen Nelson (Managing Director of Business Development)
Products Leveraged buyout and Growth capital
Total assets $20 billion
Number of employees
 80+
Website www.welshcarson.com

Welsh, Carson, Anderson & Stowe (Welsh Carson or WCAS) is a private equity firm. WCAS was formed in 1979 and focuses on investing in two growth industries, information/business services, and healthcare, primarily in the United States. WCAS has a current portfolio of approximately 30 companies and has organized 15 limited partnerships with total capital of $20 billion, consisting of 11 equity partnerships and four subordinated debt partnerships. WCAS is currently investing an equity fund, Welsh, Carson, Anderson & Stowe XI, L.P., and a dedicated subordinated debt fund, WCAS Capital Partners IV, L.P.

WCAS’s strategy is to (i) buy growth businesses, (ii) partner with outstanding management teams, and (iii) build value for the WCAS’s investors through a combination of operational improvements, internal growth initiatives, and strategic acquisitions. WCAS differentiates itself from other private equity firms by industry specialization, investment track record, growth oriented and operational focus, repeat management teams, and the continuity and financial commitment of WCAS.

WCAS has approximately 80 employees, including 15 general partners. The firm also has a Resources Group, which is composed of approximately 25 operating executives and senior industry executives. The Resources Group assists the firm’s portfolio companies by identifying and implementing initiatives focused on growth and operational improvement. The Resources Group works with the firm’s investment professionals and portfolio company management teams to develop value maximization plans ("VMPs") for each new investment. These VMPs are unique for each portfolio company and encompass a wide range of strategic initiatives, including revenue enhancement and cost management strategies, corporate governance, motivation of key management team members, financial reporting dashboards, as well as potential acquisitions and integration timelines.

History

WCAS was formed in 1979 by three founders, Patrick Welsh, Russell Carson, and Bruce Anderson. Patrick Welsh and Russ Carson had previously served as President and Chairman of Citicorp Venture Capital. Bruce Anderson was formerly Executive Vice President of Automatic Data Processing. WCAS was originally a venture capital firm, and WCAS’s first Equity Partnership totaled $33 million in commitments. In 1979, Richard Stowe joined WCAS as a General Partner, having worked previously at New Court Securities Corporation, now Rothschild Inc.

Today, WCAS has been in business for over 33 years, having raised $20 billion of capital in 11 equity partnerships and four subordinated debt partnerships. WCAS has 15 General Partners, who work in one New York-based office. Tony de Nicola and Paul Queally became Co-Presidents of WCAS in 2000 and currently lead the information/business services and healthcare practices.

Portfolio Investments

There are 40 current or former public companies in WCAS's two core industries that can trace their roots to the firm. The combined market capitalization of these companies exceeds $100 billion.

In information & business services, current and former portfolio companies include:

In healthcare, current or former public companies include:

Investment Funds

WCAS invests in growth-oriented companies within the healthcare and information/business services industries. WCAS’s investment strategy is to (i) buy growth businesses in two core industries, (ii) partner with outstanding management teams and (iii) build value through a combination of operational improvements, internal growth initiatives and strategic acquisitions.

WCAS’s investment strategy is deal size agnostic. WCAS’s activities include (i) conceiving and creating new market opportunities, (ii) providing capital to meet the needs of growing businesses and (iii) investing in growth oriented later-stage buyouts and special situations. For both small and large investments, focus on producing capital gains and attractive investment multiples in addition to strong internal rates of return.

Since its founding in 1979, WCAS has raised eleven private equity funds and four mezzanine capital funds:

Private Equity

  • 1979 - WCAS I ($33 million)
  • 1980 - WCAS II ($32 million)
  • 1983 - WCAS III ($81 million)
  • 1985 - WCAS IV ($178 million)
  • 1989 - WCAS V ($371 million)
  • 1993 - WCAS VI ($604 million)
  • 1995 - WCAS VII ($1.4 billion)
  • 1998 - WCAS VIII ($3.0 billion)
  • 2000 - WCAS IX ($3.8 billion)
  • 2005 - WCAS X ($3.3 billion)
  • 2008 - WCAS XI ($3.9 billion)

Mezzanine Debt

  • 1987 - WCAS Capital Partners ($209 million)
  • 1990 - WCAS Capital Partners II ($354 million)
  • 1997 - WCAS Capital Partners III ($1 billion)
  • 2004 - WCAS Capital Partners IV ($1 billion)

Source: Preqin (Formerly known as Private Equity Intelligence)[4]


References

  1. ↑ Qwest to Sell Yellow Pages For $7 Billion (New York Times, 2002)
  2. ↑ Donnelley to Acquire Dex Media for $4.2 Billion (Bloomberg, 2005]
  3. ↑ KOHLBERG KRAVIS AND WELSH CARSON ACQUIRING MEDCATH (New York Times, 1998)
  4. ↑ Preqin

http://www.postandcourier.com/article/20140829/PC16/140829319/1177

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