Sept 24 (Reuters) – Media-focused buyout firm Providence
Equity Partners Inc has sold an under 10 percent stake in the
company managing its funds to two institutional investors, a
person with direct knowledge of the matter said on Monday.
The Providence, Rhode Island-based private equity firm has
sold the stake in the company, called the general partner, to a
U.S. pension fund and a sovereign wealth fund, the person said
on condition of anonymity because the matter is confidential.
All the proceeds from the sale will stay with Providence to
fund initiatives such as seeding new funds and expanding
globally, the person added. The person did not disclose the
value of the transaction.
Providence declined to comment.
Some private equity firms have chosen a private placement of
the general partner as a way to raise capital. CVC Capital
Partners Ltd has sold a 10 percent stake of the firm to a group
of investors, a source familiar with the situation told Reuters
last week.
Providence’s stake sale contrasts with those of the more
diversified alternative asset managers that decide to go public.
Carlyle Group LP was the latest major private equity firm
to pursue a stock market flotation, completing a $671 million
initial public offering in May.
The Wall Street Journal reported on Providence’s sale of a
stake to investors earlier on Monday.
