FOR IMMEDIATE RELEASE
JH Partners Closes $200 Million Private Equity Fund
Nation's Five Largest Endowments Invest
SAN FRANCISCO - December 15, 2004 -- JH Partners LLC, a San Francisco-based private equity firm, today announced the closing of its first institutional fund totaling $200 million. The nation's five largest endowments - Harvard Management Company, MIT, Princeton University Investment Company, Stanford Management Company and Yale University - are the institutions that committed capital to the fund.
"The addition of institutional equity partners to our existing investor group represents the next stage in our firm's growth and development. We are pleased to partner with such distinguished institutions whose long-term investment objectives are closely aligned with our own," said John Hansen, President of JH Partners.
Since 1986, the firm's principals have made more than 30 investments, representing approximately $190 million of invested capital, in a strategy to build durable equity value in growth-oriented consumer and marketing-driven companies. JH Partners and its principals have played an instrumental role in the growth of such powerful and well known consumer brands as Peet's Coffee & Tea, Bare Escentuals, Performance Bicycle Shop, Bell Helmets and Design Within Reach.
"Our investment strategy will remain the same, with a focus on consumer products and services businesses in the lower end of the middle market, particularly in situations where the operating experiences of our own professionals can add value to the enterprise." said Hansen.
"We believe JH Partners employs a proven and disciplined strategy in helping middle market companies along the consumer continuum expand and accelerate their profitability," said Philip Rotner, Managing Director of Private Equity for MIT.
"We believe that JH Partners represents a rare combination of domain expertise and investment skill that should provide the foundation for a firm of excellence," said Daniel Feder, Managing Director of Private Equity for Princeton University Investment Company.
"JH Partners' unique and differentiated investment strategy and superior management skills have created tremendous value in the industry niches in which the firm is active," added David Burke, Managing Director of Private Equity for the Stanford Management Company.
JH Partners specializes in lower middle market companies with revenues of $10 million to $150 million. The firm has deep, hands-on operating experience and works closely with the management of its partner companies to create value through organic growth, rather than simply financial engineering or acquisitions.
Over the past year, the firm made a number of new investments. JH Partners also announced several liquidity events, which returned approximately $360 million on invested capital of $40 million. In December 2003, JH Partners completed the sale of Walter Drake, a catalog retailer of household goods, to Blythe, Inc. In June, the firm and Berkshire Partners LLC recapitalized MD Beauty, a company in which the firm's partners have played an active role for more than a decade, and today is one of the fastest growing personal care companies in the U.S.
JH Partners is also the sole private equity investor in Design Within Reach, Inc. and among the largest investors in PlanetOut Inc., both of which went public this year. These were two of the Top 10 best performing initial public offerings in the San Francisco Bay Area for 2004. In November, JH Partners - along with management - purchased CHEF's, a catalog company offering top-quality cooking equipment, from Neiman Marcus. Earlier this month, JH Partners and company management announced the acquisition of Bell Automotive, a leading supplier of automotive accessories.
Key sub-segments in which JH Partners has invested successfully include: personal care, food and beverage, home furnishings, and lifestyle products and services.
About JH Partners LLC
JH Partners is a San Francisco-based private equity firm focused on investments in growth-oriented middle market consumer products and services companies. The firm distinguishes itself among private equity firms in that each of its principals has senior-level operating experience building middle-market consumer related businesses. JH Partners has been instrumental in aiding the growth of powerful consumer brands, including Peet's Coffee & Tea (NASD: PEET), Bare Escentuals, Performance Bicycle Shop, Bell Helmets, and Design Within Reach (NASD: DWRI), among others. Additional information may be found at www.jhco.com.
Contact:
JH Partners LLC
John Hansen
415-364-0320
Abernathy MacGregor Group
Steven Bruce
212-371-5999
Dan Hilley/Ian Campbell
213-630-6550
