 | |
| Company type | Private |
|---|---|
| Industry | Hedge fund,Private Equity |
| Founded | 2005; 21 years ago (2005) |
| Headquarters | Seagram Building New York City,New York,United States |
| Products | Leveraged buyouts,distressed securities |
| AUM | $56 Billion |
| Website | centerbridge |
Centerbridge Partners, L.P. is a multi-strategy private investment firm focused onleveraged buyouts anddistressed securities.
The firm manages over $56 billion of assets[1] and is based inNew York City, with an additional office inLondon. The firm invests in both control (private equity and public debt with a "loan-to-own" strategy) and non-control (public market debt, public market equities, and other publicly traded securities) opportunities.
The firm[2] was founded in 2005 byJeffrey Aronson andMark Gallogly. Aronson had previously been the head of distressed securities and had founded theleveraged loan business atAngelo, Gordon & Co., which he had joined in 1989 fromL.F. Rothschild & Co. Gallogly was formerly a senior managing director and head of private equity investments at theBlackstone Group from 2003 until his departure. At Blackstone, Gallogly was heavily involved in the firm's investments inNew Skies Satellites andSirius Satellite Radio among others and had joined the firm in 1989 fromManufacturers Hanover Trust Company, where he worked in acquisition finance.[citation needed]
In September 2006, the firm raised its debut fund with $3.2 billion of investor commitments to focus on control investments in distressed securities as well asleveraged buyout transactions.[3][4] The firm also raised a $2 billion non-control, activist-oriented credit trading fund known as Centerbridge Special Credit Partners through 2009 and 2010.[5] In 2010, the firm announced plans to begin marketing a second investment fund with a target of $3.75 billion of investor commitments.[6] In 2011, the firm closed its second flagship fund, Centerbridge Partners II, on $4.4 billion, including a commitment from the GP.[7] This was followed by a closing of its $2bn second Special Credit Partners fund in March 2012.[2]
In 2010, Centerbridge won control ofExtended Stay Hotels, a company that Gallogly had been involved with atBlackstone.[8] That same year, Centerbridge acquired 'GMAC Commercial Finance', a subsidiary ofAlly Financial[9] as well as Rock Bottom Restaurants and Gordon Biersch Brewery Restaurant Group, merged to formCraftWorks Restaurants & Breweries.[10] In 2012, Centerbridge acquiredP. F. Chang's China Bistro, a chain of Chinese casual dining restaurants.[11] Three years later announced its agreement to buySenvion SE from Indian wind turbine manufacturerSuzlon[12] and acquiredGreat Wolf Resorts, the world's largest chain of indoor water park resorts for $1.35 billion.[13]
In August 2016, Centerbridge Partners, together with Canyon Capital Advisors,Värde Partners and seven other funds, participates in the rescue of Spanish giant Abengoa, injecting a combined €1.17 billion.[14]
In January 2017, Centerbridge Partners sells Vela Energy to Sonnedix for €600 million. Sonnedix thus takes over a portfolio of 136MWp, corresponding to 43 solar PV plants in Spain, making it the second largest solar PV operator in Spain and one of the largest in the world, with close to 500MW worldwide.[15][16]
During the2020 Democratic Party presidential primaries,Pete Buttigieg received scrutiny for accepting donations from members of Centerbridge due to the firm's "reputation for its work buying up distressed debt inPuerto Rico."[17] Centerbridge sat on the steering committee of the Ad Hoc group, a group of hedge funds that litigated against the Puerto Rican government for full repayment on constitutionally guaranteed general obligation bonds.[18]
In the fall of 2020, Centerbridge took a minority stake inFreshDirect, an online grocer. The deal was part of a buyout of the company along with Dutch-based food retailerAhold Delhaize.[19]