Brentwood Associates
Encyclopedia
Brentwood Associates is one of the oldest private equity
firms in the US with groups focusing on both leveraged buyout
and venture capital
investments.
The firm, which is based in Los Angeles
, was founded in 1972. The firm has raised approximately $2.3 billion since inception across 13 funds. The firm's leveraged buyout business raised approximately $1.4 billion across four funds, the earliest of which was raised with $140 million of commitments in 1990. The venture capital group raised over $900 million across nine funds, the earliest of which was formed in 1980 and the last of which was raised in 1998, prior to the spinout of the firm's venture business.
practice has focused on acquiring more mature businesses, while its venture capital group has invested in earlier stage, startup
companies.
, Oriental Trading Company
, Bell Sports, Bell Automotive, Prince Sports
, C.C. Filson, Graphic Controls Corporation, The Teaching Company
, Stanley Works
, Zoës Kitchen
and Zumiez
.
. Among the firm's most notable investments in software and internet businesses during this period included: Wellfleet Communications
, Xylan
, Documentum
, ISOCOR, WebTV Networks and Freegate
. After 1999, investments in the internet and information technology sectors were made by Redpoint Ventures.
Brentwood also had a long history of investing in health care companies with strategically important products or services. Today, the vast majority of Brentwood's successful healthcare investments have been acquired by and integrated into larger healthcare companies including Baxter Healthcare and Medtronic
. Among Brentwood's most notable investments included Keravision, Aradigm, Webster Laboratories and Interflo Medical.
Leading investor in start up companies in the late 1990s. Raised a $300 million venture fund in 1998. Brentwood Venture Capital was founded in 1972 as Brentwood Associates. Over the last 26 years, Brentwood has grown to be one of the oldest and largest firms in the venture capital industry, having raised over $1 billion in capital and investing in over 300 entrepreneurial companies
In 1999, the partners from Brentwood joined with partners from Institutional Venture Partners (IVP) and Crosspoint Ventures and created two separate industry-focused firms with the relevant firm making new investments in each of the respective industries:
In 1999, Redpoint raised a $600 million venture fund Ventures I, at the time the largest first-time fund for a new firm.
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firms in the US with groups focusing on both leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
and venture capital
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
investments.
The firm, which is based in Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
, was founded in 1972. The firm has raised approximately $2.3 billion since inception across 13 funds. The firm's leveraged buyout business raised approximately $1.4 billion across four funds, the earliest of which was raised with $140 million of commitments in 1990. The venture capital group raised over $900 million across nine funds, the earliest of which was formed in 1980 and the last of which was raised in 1998, prior to the spinout of the firm's venture business.
Investments
Since inception in 1972, Brentwood has made dozens of investments across a wide array of industries. The firm's leveraged buyoutLeveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
practice has focused on acquiring more mature businesses, while its venture capital group has invested in earlier stage, startup
Startup company
A startup company or startup is a company with a limited operating history. These companies, generally newly created, are in a phase of development and research for markets...
companies.
Buyout investments
The firm's leveraged buyout practice has completed more than 30 acquisitions. Among the most notable companies in which Brentwood has invested include: AriatAriat
Ariat is an American manufacturer of riding boots and other equipment and apparel intended for equestrians. Founded by Beth Cross and Pam Parker, Ariat International, Inc. sought to provide engineered western style boots for riding, work, and casual wear...
, Oriental Trading Company
Oriental Trading Company
The Oriental Trading Company is a direct marketing company for novelties, small toys, and party items. It was founded in 1932 as one of the United States' first wholesale companies. It is based in Omaha, Nebraska, and its majority owner is the Carlyle Group...
, Bell Sports, Bell Automotive, Prince Sports
Prince Sports
Prince Sports, Inc., based in Bordentown, New Jersey, is a manufacturer of equipment for racquet sports, primarily for tennis, badminton, and squash....
, C.C. Filson, Graphic Controls Corporation, The Teaching Company
The Teaching Company
The Teaching Company is a Chantilly, Virginia company that produces recordings of lectures by university professors and high-school teachers. It sells the courses in CD, DVD, MPEG-4, and MP3 formats.- Background :...
, Stanley Works
Stanley Works
Stanley Black & Decker , formerly known as The Stanley Works, is a manufacturer of tools and hardware and provider of security products and locks headquartered in New Britain, Connecticut...
, Zoës Kitchen
Zoës Kitchen
Zoës Kitchen is a fast casual restaurant chain headquartered in Birmingham, Alabama, United States. Serving a menu of variety of chicken salad, pasta salad, pitas and grilled chicken sandwiches, the chain has grown to include 54 locations across 12 states with plans to expand further.Zoës Kitchen...
and Zumiez
Zumiez
Zumiez is a mall-based, specialty apparel store founded by Tom Campion and Gary Haakenson in 1978, and publicly traded since 2005. "Offering gear and clothing for the skater, snowboarder, and surfer," Zumiez sells action-sports related clothing and has created an image based around action sports...
.
Venture capital investments
Brentwood's venture group, prior to its spinout separation in 1999, was among the most prominent investment firms in the 1990s Internet boomDot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
. Among the firm's most notable investments in software and internet businesses during this period included: Wellfleet Communications
Wellfleet communications
Wellfleet Communications was an Internet router company founded in 1986 by Paul Severino, Bill Seifert, Steven Willis and David Rowe based in Bedford, Massachusetts, and later Billerica, Massachusetts...
, Xylan
Xylan
Xylan is a generic term used to describe a wide variety of highly complex polysaccharides that are found in plant cell walls and some algae. Xylans are polysaccharides made from units of xylose ....
, Documentum
Documentum
Documentum is an enterprise content management platform, now delivered by EMC Corporation, as well as the name of the software company that originally developed the technology. EMC acquired Documentum for $1.7 billion in December, 2003...
, ISOCOR, WebTV Networks and Freegate
Freegate
Freegate is software that enables internet users from mainland China, Syria, Iran, Vietnam and United Arab Emirates, among others, to view websites blocked by their governments. The program takes advantage of a range of open proxies, which allow users to penetrate firewalls used to block web sites....
. After 1999, investments in the internet and information technology sectors were made by Redpoint Ventures.
Brentwood also had a long history of investing in health care companies with strategically important products or services. Today, the vast majority of Brentwood's successful healthcare investments have been acquired by and integrated into larger healthcare companies including Baxter Healthcare and Medtronic
Medtronic
Medtronic, Inc. , based in suburban Minneapolis, Minnesota, is the world's largest medical technology company and is a Fortune 500 company.- History :...
. Among Brentwood's most notable investments included Keravision, Aradigm, Webster Laboratories and Interflo Medical.
History
Brentwood was originally founded by Frederick Warren, Timothy M. Pennington III and B. Kipling HagopianLeading investor in start up companies in the late 1990s. Raised a $300 million venture fund in 1998. Brentwood Venture Capital was founded in 1972 as Brentwood Associates. Over the last 26 years, Brentwood has grown to be one of the oldest and largest firms in the venture capital industry, having raised over $1 billion in capital and investing in over 300 entrepreneurial companies
In 1999, the partners from Brentwood joined with partners from Institutional Venture Partners (IVP) and Crosspoint Ventures and created two separate industry-focused firms with the relevant firm making new investments in each of the respective industries:
- Redpoint VenturesRedpoint VenturesRedpoint Ventures is a prominent venture capital firm focused on investments in early stage technology companies. The firm's partners include Allen Beasley, Jeff Brody, Satish Dharmaraj, Tom Dyal, Tim Haley, Brad Jones, Nety Krishna, Chris Moore, Lars Pedersen, Scott Raney, John Walecka, Geoff...
, focusing on early stage information technlogy investments - Versant Ventures, focused on health care venture investments
In 1999, Redpoint raised a $600 million venture fund Ventures I, at the time the largest first-time fund for a new firm.
External links
- Brentwood Associates (company website)