Private Equity
Transactional and strategic counsel for private equity sponsors, funds and portfolio companies across the investment lifecycle.
Hughes Hubbard’s Private Equity team represents private equity sponsors and funds, as well as their portfolio companies, in a wide range of transactions. These include acquisitions and divestitures of companies through negotiated and unsolicited transactions, primary and secondary leveraged buyouts, rollups, going-private transactions, management buyouts and auction bids. We also advise sponsors and funds on alternative liquidity options, such as minority stakes sales, continuation funds, general partner-led secondaries, dividend recapitalizations and net asset value loans.
“The team at Hughes Hubbard is always available, providing thoughtful, solution-oriented and practical commercial counsel.”
– Client quote, Chambers USA.
For our clients’ portfolio companies, we handle transactional and other matters, including strategic add-on acquisitions, recapitalizations and other refinancings; restructurings; joint ventures; spin-off transactions; and dispositions. We also handle acquisitions of non-control equity interests in public and private companies, economic participations and other co-investments. Furthermore, we have extensive experience with all forms of acquisition and other related transaction financings, including asset-based and other senior financing, mezzanine, high-yield debt, and preferred and common equity.
Our Private Equity team works closely with our Venture Capital and Asset Management practices to serve our clients through every stage of funding.
Our Experience
Selected examples of our work include representation of:
Albion River, a private direct investment firm focused on the defense sector, in the carve-out divestiture of United Electronics Corporation by its portfolio company Arotech
Investindustrial, one of Europe's leading independent investment groups, in the acquisition by its portfolio company Nexture of Frulact, a leading global manufacturer of fruit-based specialty ingredients and flavors, from funds managed by Ardian
HPS Investment Partners, a part of BlackRock, in:
the carve-out acquisition by its portfolio company PEAC Solutions of the specialty financing business of ePlus (PLUS)
a cross-border carve-out transaction in the aviation industry
Alternative investment firm AURELIUS in the carve-out acquisition by its portfolio company ZIM Aircraft Seating of HAECO Cabin Solutions from HAECO Group
Diversified Aero Services, a leading global aircraft inventory solutions provider based in Miami, in the sale of a 50% stake in DASI to Marubeni Corporation, including an exit of minority investor Fortress Investment Group, and relating joint venture arrangements
Greenbriar Equity Group LLC, a private equity firm focused on the transportation industry, and its portfolio companies in dozens of acquisitions, add-on acquisitions and subsequent sales, including those of JEGS High Performance, FragilePAK, Sun Auto Tire & Service, SEKO Logistics, LaserShip, Grakon Holdings, PetroChoice Holdings Inc., Nordco Inc. and Transplace Holdings Inc.
Platinum Equity, a private equity firm, in numerous transactions, including:
a strategic partnership with Nesco Holdings Inc. for the acquisition of Custom Truck One Source, a portfolio company of Blackstone Group Inc.
the acquisition of Wesco Aircraft Holdings, a New York Stock Exchange-listed aerospace supply chain management service provider
Kenner & Co. in:
the acquisition of Dynacast and subsequent bolt-on acquisitions and related credit facilities
the sale of Pace Industries, a die casting manufacturer, to Cerberus/TCW in bankruptcy
Kensington Capital Partners in the acquisition of Pure Power Technologies, a supplier of engine-based fuel and air management systems, from Navistar as well as its subsequent sale to Stanadyne
The Smithfield Group, a global investment holding company, in the platform acquisitions that formed Pure Safety Group, a harness safety supplier
A leading global alternative investment management firm in numerous investments and transactions, such as its acquisitions of various companies in the equipment finance, rental services and financial services industries, including in each case a sale-leaseback acquisition financing from an affiliate of the firm
Latest Updates
Private Credit and Secured Hedges — Drafting Issues to Avoid
This article addresses numerous drafting issues identified in New York-law governed direct lending transactions that have either caused borrowers to seek amendments or the presence of which have caused secured hedge providers to walk away from potential trades.HHR Advises DASI in Its 50% Sale to Marubeni Corporation
The firm represented leading global aircraft inventory solutions provider DASI in the sale of 50% of the outstanding ownership of DASI, LLC to Marubeni Corporation, a publicly traded Japanese company that is one of the world’s largest trading and investment conglomerates, and related joint venture arrangements.M&A, PE and VC Transactions in a High Interest Rate Environment
In 2022, for the first time in 15 years, the Federal Reserve rapidly raised the federal funds rate in response to an increase in the rate of inflation not seen in four decades. The federal funds rate is a range of interest rates that lending banks charge other banks to borrow overnight excess capital reserves held by the lending bank at the Federal Reserve in order to maintain the borrowing bank’s minimum capital requirements. The effective federal funds rate increased from 0.08% in January 2022 to 4.58% in February 2023. It is forecasted to reach around 5.5% before the end of 2023. The higher federal funds rate increased the capital costs of banks and, as a result, increased the market interest rates that banks and other lenders charge their customers. The increased interest rates continue to adversely affect commercial transactions, including mergers and acquisitions, private equity, and venture capital transactions, causing parties to focus on terms in such transactions that have not been relevant over the last 15 years.
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