The Cypress Group is a private equity company focused on leveraged buyout investments in companies across a range of industry sectors. At its peak in the late 1990s and early 2000s, Cypress was among the largest US private equity firms, although by the end of the decade the firm would find itself in the process of winding down its operations.Cypress Group Faces Vote For Survival. New York Post, August 7, 2009
The firm, based in New York City, was founded in 1994 by the four senior members of Lehman Brothers' merchant banking group, Jim Stern, Jeff Hughes, Jamie Singleton and David Spalding.Lehman, Seeking Higher Profit, Returns to Merchant Banking. New York Times, November 12, 1996
Cypress has raised approximately $3.6 billion since its inception across two funds raised in 1996 and 1999.
History The Cypress Group was founded in 1994 by Jim Stern, Jeff Hughes, Jamie Singleton and David Spalding, who had served previously as the senior managing directors of Lehman Brothers' merchant banking group. The four founders were responsible for restarting Lehman's merchant banking efforts after the departure of Pete Peterson and Stephen A. Schwarzman to found The Blackstone Group, a private equity and investment banking firm.
The Cypress Group raised its first institutional private equity fund in 1996 with $1.05 billion of investor commitments.Cypress Closes Funds. New York Times, February 22, 1996
In 1999, the firm completed fundraising for Cypress Merchant Banking Partners II, with $2.5 billion of investor commitments. At the time it was raised, the firm's new fund ranked among the largest raised for leveraged buyout transactions. Ultimately, Cypress II would prove to be the firm's final fund when it announced in 2007 that it would abandon further plans to raise a successor fund.Winding down at Cypress Group. Wall Street Journal, June 18, 2007
Cypress had indicated its intentions to raise $1.5 billion. However, a series of weak investments, particularly in Cypress II, severely impacted the firm's plans to raise a third fund. By 2007, Cypress had lost a significant number of its senior investment professionals. As of 2009, the firm is still managed day-to-day by two of its original founders, Jim Stern and Jeff Hughes. David Spalding assumed a role at his alma mater Dartmouth College and Jamie Singleton still remains on the firm's board.
In October 2009, the firm's Cypress Merchant Banking Partners II will reach the end of its original 10-year term. While the firm is seeking to extend the life of the fund, investors in the fund are currently negotiating an orderly wind-down of the investments in the portfolio.Fate of Cypress Group Said to Be in Investors’ Hands. New York Times, August 7, 2009
Investments Since inception in 1994, Cypress has invested more than $4 billion of equity in more than 30 companies through transactions totalling in excess of $22 billion in size. Historically, Cypress employed an industry-based investment strategy and the firm was structured into six industry groups covering large segments of the economy, including: Packaging, Building Products, Construction Materials & Retail Automotive & Aerospace/Defense General Industrial & Services Healthcare & Financial Services Media & Entertainment, Lodging & Leisure Consumer Products
Among the firm's notable investments include: Affinia GroupDANA REDUCES SALE PRICE OF ITS AUTO PARTS UNIT. New York Times, November 3, 2004DANA SELLS REPLACEMENT PARTS BUSINESS TO CYPRESS. New York Times, July 10, 2004 AmtrolCYPRESS GROUP TO PURCHASE AMTROL. New York Times, August 30, 1996 Catlin Group Cinemark Theatres Cooper StandardCOOPER TIRE SELLS AUTOMOTIVE UNIT FOR $1.2 BILLION. New York Times, September 18, 2004 Financial Guaranty Insurance CompanyGENERAL ELECTRIC TO SELL BOND INSURANCE UNIT. New York Times, August 5, 2003 Frank's Nursery & Crafts Infinity Broadcasting Corporation Lear Corporation Loral Aerospace Holdings McBride plc Meow MixEQUITY FIRM BUYS CAT FOOD COMPANY FOR $425 MILLION. New York Times, October 15, 2003Del Monte to Buy Meow Mix And Sell Some Food Units. New York Times, March 3, 2006 R.P. Scherer Corporation Republic National Cabinet Corporation Scottish Re Group WESCO InternationalBUYOUT FIRM JOINS WESCO MANAGERS IN TAKEOVER. New York Times, April 25, 1998 Williams ScotsmanWILLIAMS SCOTSMAN SALE SET FOR $675 MILLION. New York Times, April 15, 1997
References
External links
The Cypress Group (company website)