Doughty Hanson Announces New Partnership Structure
Doughty Hanson, one of the largest independent private equity firms in Europe, today announces that following the death of co-founder and majority shareholder Nigel Doughty in February 2012, it is restructuring the business to position it for future growth.
The new structure follows consultation with Mr. Doughty’s Estate, Doughty Hanson employees and its Limited Partners and strategic advice which was provided by Richmond Park Partners LLP.
The structure will involve the creation of a new firm which will be wholly-owned by a newly-created Employee Trust and Richard Hanson. It will be the vehicle for future private equity funds and, by Fund VII, the participants in the Employee Trust will own the majority of the firm. Additionally, the investment manager of the next private equity fund, Doughty Hanson VI, will be structured as a UK-registered Limited Liability Partnership. This vehicle will also be regulated by the FSA and will remain tax resident in the UK.
Like many firms which have adopted the LLP structure, Doughty Hanson believes it allows for the optimum flexibility so as to better align its interests with those of the Limited Partners.
Stephen Marquardt, Chief Executive of Doughty Hanson, said: “While borne out of very sad circumstances, we believe that operating the new Group structure and existing Doughty Hanson Funds in parallel provides the best way to ensure we deliver value for new and existing investors, while positioning the Company to grow and evolve in the future. We are certain, as well, that it will ensure we retain and incentivise the best talent to deliver returns for our investors.”
For over 25 years, Doughty Hanson has had a history of creating value, investing responsibly and generating superior returns for its Limited Partner investors. Recent transactions announced have included the acquisition of USP Hospitales, the third largest private hospital operator in Spain; in the Netherlands of Eurofiber, a major fibre optic company; and in Germany, the follow-on investment in CinemaxX by Vue Entertainment. Recent realisations have included the successful IPO of Tumi (a Fund IV portfolio company) on the NYSE in April and the sale of Norit (a Fund V portfolio company) which was announced in June.