Founded 2000 Total assets 15 billion USD | Website www.goldengatecap.com Number of employees 30 Type Privately held company | |
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Headquarters San Francisco, California, United States Subsidiaries Red Lobster, Eddie Bauer, Payless ShoeSource, Romano's Macaroni Grill, Golden Gate Private Equity, Inc | ||
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Golden Gate Capital is an American private equity firm based in San Francisco. The firm makes investments primarily in mature technology companies, as well as other select industries, through leveraged buyout transactions as well as significant minority purchases and growth capital investments. As of October 2016, it had $15 billion in assets under management (AUM).
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The firm was founded in 2000, by former investment professionals from private equity firm Bain Capital, as well as business consultants from its affiliate Bain & Company.
It has approximately 30 investment professionals.
Investments
The firm primarily seeks investments, less than $100 million in size, that have possible rapid gains in equity, with a significant possibility of liquidity.
On October 9, 2012, Wolverine World Wide, Golden Gate Capital and Blum Capital took over Collective Brands.
On May 15, 2007, Limited Brands announced its intent to sell a 67% stake in Express to Golden Gate Capital Partners. When the sale was finalized in July 2007, Golden Gate's stake in the company was 75% for approximately $550M, instead of the announced 67%.
The firm made a larger investment buying a majority stake in the Romano's Macaroni Grill restaurant chain for $131M in 2008.
In 2006, it bought Neways International for $500 M, acquiring the company at an auction held by the divorce court after a $700 M transaction led by Ramy El-Batrawi was abandoned because of the feuding between the divorcing couple that owned Neways International.
In June 2009, the company announced the purchase of the J. Jill brand business from Talbots. In April 2011, the Bahrain-based private equity firm Arcapita bought Jill Acquisitions from Golden Gate.
In 2011, it acquired California Pizza Kitchen.
In the aftermath of the bursting of the Dot-com bubble the firm has shown a pattern of investments in technology companies that may have been distressed by the recession of that time.
On July 28, 2014 Golden Gate completed the purchase of Red Lobster from Darden Restaurants for $2.1 billion.
In November 2014, Golden Gate Capital agreed to buy Angus Chemical Co. and its Sterlington plant from Dow Chemical for $1.215 billion.
In May 2015, the company backed Philip P. Gass and Kostas Cheliotis with $750 million for a reinsurance company.
In January of 2017, the company purchased Bob Evans Restaurants for $565 million and Pineland Farms Potato Company for $115 million, stating that the foods segment is "its fastest-growing and most profitable segment and believes this transition will result in higher returns for shareholders."