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TA Associates Management, L.P.
Company typeLimited Partnership
IndustryPrivate Equity
Founded1968; 56 years ago (1968)
FounderPeter Brooke
HeadquartersJohn Hancock Tower
Boston, Massachusetts, United States
Key people
ProductsGrowth capital, Leveraged buyouts, Recapitalizations
AUM$47.5 billion[1] $45.2 billion[2]
Number of employees
126 [1]181[2] (2021)
Websitewww.ta.com

TA Associates, founded in 1968, is one of the early modern-era private equity firms in the United States.[3] The firm leads buyouts and minority recapitalizations of profitable growth companies. TA Associates has invested invests across a range of industries, including five industry groups: technology, healthcare, consumer products, financial services and business services.[4]

TA Associates has raised $47.5 billion of capital since inception.[5] Since its founding, the firm has been a lead investor and director in more than 500 companies,[citation needed] invested in more than 560 companies,[6] and been ranked among the 50 largest private equity firms (ranked 41 in 2014) (ranked 27 in 2022) globally.[7][8]

The firm is headquartered in Boston, Massachusetts, with additional offices in Menlo Park, Austin, London, Mumbai and Hong Kong. As of January 1, 2015, TA had more than 130 employees, including 80 investment professionals in Boston, Menlo Park, London, Bengaluru, Mumbai and Hong Kong. As of July 2022, TA had more than 110 investment professionals.[6][4]

History

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Founding and early growth

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TA Associates was founded in 1968 by Peter Brooke with the backing of his former firm, Tucker, Anthony & RL Day, an investment banking and brokerage firm. Prior to founding TA, from 1963 to 1968, Brooke had headed the corporate finance and venture capital activities of Tucker Anthony. Previously, Brooke had been responsible for expanding the private equity activities of Bessemer Securities and had founded the High Technology Lending Group of First National Bank of Boston. At the time it was founded, the firm focused primarily on making venture capital investments in earlier stage companies.

The firm expanded significantly through the 1970s growing from $5 million of capital in 1969 to $125 million by the beginning of the 1980s, making TA the largest independent venture capital firm in a 1980 ranking.[9] Through the 1970s, the firm's investments averaged 30% to 40% annually. Among the firm's notable investments of the 1970s were Biogen, Artificial Intelligence Software, Immunogen and Digital Research.[9] Jacqui Morby, one of the first women to become a partner at a venture capital firm, secured TA's earliest investments in software companies, including Digital Research as well as Capex, McCormack & Dodge, and others.[10]

Early C. Kevin Landry era

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As the 1980s developed, TA found itself increasingly investing larger amounts in more mature, profitable companies as opposed to the small early stage investments in start-up companies that had characterized the firm's first decade and a half. By the mid-1980s, TA was no longer describing itself as a "venture capital firm", instead using the more general "private equity" description. By the early 1990s, the firm found itself rarely investing in early stage start-up companies, focusing primarily on later-stage growth capital investments in more mature businesses.[11]

Much of this evolution from a regional venture capital investor to global growth private equity firm has been credited to C. Kevin Landry.[12] Landry began his career with TA in 1968, became a General Partner in 1972, Managing Partner in 1982, CEO in 1984 upon the firm's incorporation, and Chairman in 2007. After retiring in 2012, he remained actively involved in the firm and was serving as a Senior Advisor at the time of his death in 2013.

TA co-led first-round funding for McAfee, valuing the company at $20 million a year before McAfee's 1992 initial public offering (IPO) raised $42 million.[13][14] In 1999, TA invested $75 million in Datek Online Holdings[15] (now part of TD Ameritrade[16]). In 2001, TA invested $59 million in Asurion.[17] TA and Friedman Fleischer & Lowe acquired Tempur World, now Tempur-Pedic, in 2002, with TA investing $130 million.[18] Also in 2002, TA paid $60 million to purchase a minority stake in Sophos,[19] which it sold to Apax Partners in 2010.[20]

Global expansion

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TA opened its office in London in 2003.[21] That same year, the firm purchased a minority stake in UK-based GlobeOp Financial Services for $82 million[22] ahead of GlobeOp's IPO on the London Stock Exchange in 2007.[23] TA invested in Intercontinental Exchange in 2004, a year before Intercontinental Exchange's IPO multiplied the investment by seven.[24] In 2006, TA purchased a minority stake in Indian company Idea Cellular,[25] marking TA's first investment in Asia;[26][27] TA exited the investment in 2011, after Idea's IPO.[28] TA supported a management buyout at Jupiter Fund Management in 2007, joining management in buying the company from Commerzbank for more than €1 billion.[29] During Jupiter's IPO in 2010,[30] TA increased its stake in the company to 22.3 percent.[31] When Jupiter acquired TA-owned Merian Global in February 2020, TA's stake became 16 percent.[32]

TA opened an office in Mumbai in 2009[33][34] and one in Hong Kong in 2011, expanding its presence in the Asia Pacific region.[35]

In 2012, certain members of TA Associates leadership, independent of the firm, began financially supporting various conservative political action groups backing candidates in favor of repealing the Dodd–Frank Wall Street Reform and Consumer Protection Act publicly claiming it was "government regulation run amok."[36] Landry was among of the leading Super PAC donors to the 2012 Mitt Romney presidential campaign.[37] Landry told the Boston Globe the Dodd-Frank legislation costs TA more than $600,000 a year in compliance-related costs which would be better spent supporting job growth fueled by private equity firms such as Bain Capital and TA Associates.[38]

TA bought Hong Kong-based Speedcast in 2012 for $32.2 million[39][40] and sold its stake for $170 million in a block trade via Macquarie in 2018.[41] In 2014, TA Associates helped organize a syndicated loan worth $1.77 billion for Millennium Health LLC. Most of the loan – $1.27 billion – was channelled back to TA Associates and others, who used it to hand out special dividends.[42] Shortly thereafter, Millennium Health LLC declared bankruptcy.[43] Voya Investment Management, the creditor, subsequently, and unsuccessfully, filed a racketeering lawsuit against TA Associates and Millennium Health founder James Slattery.[44]

Recent history

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In 2014, TA purchased a majority stake in SkinnyPop for $320 million[45][46] and brought its parent fund, Amplify Snack Brands, to an IPO the next year.[47] Also in 2014, TA invested $90 million in ZoomInfo, an investment that had a value of $6.12 billion when ZoomInfo had its IPO in June 2020.[48] TA purchased the asset management arm of Russell Investments, a Seattle-based firm, in 2015 for $1.15 billion.[49][50] TA acquired a majority interest in Access Technology Group (now The Access Group) in January 2015;[51] as of 2022, it had become one of the largest software companies headquartered in the UK.[52][53] In 2018, TA and consulting firm ST6 formed software company Insightsoftware; in 2021, Insightsoftware received a $1 billion investment from Hg, giving Hg joint control of Insightsoftware with TA.[54]

Ajit Nedungadi, a managing partner who first joined TA in 1999, became CEO of the company in January 2021.[55][56] On 8 February 2021, TA Associates-owned British digital auction platform Auction Technology Group (ATG), chaired by WorldRemit CEO Breon Corcoran, announced plans to float in the London Stock Exchange in March 2021. The listing is was expected to value ATG at £600 million, and the firm said it is hoping hoped to raise £250 million through the IPO.[57] ATG began trading on the London Stock Exchange on 23 February 2021.[58][59] TA purchased Netherlands-based software company Unit4 in March 2021 for $2 billion.[60]

TA raised $12.5 billion for its 14th flagship fund, TA XIV, in June 2021.[61]

In 2019, the firm completed fundraising of $1 billion for TA Select Opportunities Fund I, followed by $1.5 billion in 2021 for TA Select Opportunities Fund II. Through the Select Opportunities Funds, TA invests in portfolio companies held by the firm’s main funds. This is part of a broader trend of private equity firms finding ways to increase hold periods on strong investments.[62][63]

As of 2021, Vatterott College, an investment of TA Associates before it closed, owes the US Department of Education $244 million.[64]

Spin-out firms

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As one of the earliest venture capital firms, there are many successful investment firms that trace their lineage back to TA Associates.[65]

References

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  1. ^ a b "IAPD – Investment Adviser Public Disclosure – Homepage". adviserinfo.sec.gov.
  2. ^ a b "TA Associates Form ADV" (PDF). Investment Adviser Public Disclosure. 31 March 2022. pp. 8–9. Retrieved 30 June 2022.
  3. ^ A Short (Sometimes Profitable) History of Private Equity, Wall Street Journal, January 17, 2012.
  4. ^ a b Singh, Preeti (25 March 2022). "Specialist Managers Gain Traction With Fund Investors". Wall Street Journal. Retrieved 3 August 2022.
  5. ^ "About TA".
  6. ^ a b Christen, Mike (7 July 2022). "Private equity powerhouse TA Associates picks Austin for third US office". Austin Business Journal. Retrieved 20 July 2022.
  7. ^ "Archived copy" (PDF). Archived from the original (PDF) on 2016-03-04. Retrieved 2016-01-31.{{cite web}}: CS1 maint: archived copy as title (link) [PEI 300, Top 50], Private Equity International, May 2014.
  8. ^ "PEI 300 2022 full ranking". Private Equity International. 2022. Retrieved 29 August 2022.
  9. ^ a b Venture Capitalists' New Role. New York Times, August 31, 1981
  10. ^ Guthrie, Julian (2019). Alpha Girls: The Women Upstarts who Took on Silicon Valley's Male Culture and Made the Deals of a Lifetime (First ed.). New York: Penguin Random House. pp. 70–71. ISBN 9780525573920. Retrieved 4 August 2022.
  11. ^ Gupta, Udayan. Done deals. 2000
  12. ^ "Kevin Landry, Former CEO of TA Associates, Dies of Cancer at 69". Bloomberg.com. August 2013.
  13. ^ Guthrie, Julian (1 May 2019). "The Woman Who Saved John McAfee From an Epically Bad Deal". Wired. Retrieved 4 August 2022.
  14. ^ "McAfee Associates stock goes public". UPI. 6 October 1992. Retrieved 4 August 2022.
  15. ^ Henriques, Diana B. (25 May 1999). "3 Venture Capital Firms Take Stake in Datek Online Holdings". The New York Times. Retrieved 5 August 2022.
  16. ^ Sorkin, Andrew Ross (8 April 2002). "Ameritrade In Deal to Buy Online Rival Datek". The New York Times. Retrieved 5 August 2022.
  17. ^ Calvey, Mark (2 April 2001). "Asurion collects $59 million from TA Associates". San Francisco Business Times. Retrieved 20 July 2022.
  18. ^ Scannell, Kara (11 October 2002). "Two Buyout Firms Agree To Acquire Tempur World". Wall Street Journal. Retrieved 5 August 2022.
  19. ^ "Sophos gets $60 million investment". CNET. 22 May 2002. Retrieved 5 August 2022.
  20. ^ Moore, Galen (4 May 2010). "Apax Partners to acquire Sophos Inc". Boston Business Journal. Retrieved 5 August 2022.
  21. ^ Meikle, Brad (15 March 2007). "TA Associates to buy Jupiter". Buyouts. Retrieved 5 August 2022.
  22. ^ "TA Associates pays $82M for share of GlobeOp". Boston Business Journal. 6 October 2003. Retrieved 5 August 2022.
  23. ^ "GlobeOp to raise £51.9m in London IPO". Finextra Research. 15 June 2007. Retrieved 5 August 2022.
  24. ^ Moyer, Liz (22 November 2005). "An Explosive Win For TA Associates". Forbes. Retrieved 20 July 2022.
  25. ^ "Idea sells 24% stake to private equity investors". The Economic Times. 29 October 2006. Retrieved 5 August 2022.
  26. ^ "TA Associates invests in Indian wireless company". Boston Business Journal. 27 October 2006. Retrieved 5 August 2022.
  27. ^ "25% in Idea sold for $550m". The Times of India. 28 October 2006. Retrieved 5 August 2022.
  28. ^ Chanchani, Madhav A (29 September 2011). "TA Associates Exits Idea Cellular". VCCircle. Retrieved 5 August 2022.
  29. ^ "Commerzbank selling Jupiter to TA Associates". Reuters. 20 March 2007. Retrieved 5 August 2022.
  30. ^ Paler, Nicholas (18 May 2010). "Jupiter to raise £220m in IPO to reduce debt burden". Citywire. Retrieved 5 August 2022.
  31. ^ Lobo, Dylan (22 March 2013). "TA Associates nets £83m from sale of 26 million Jupiter shares". Citywire. Retrieved 5 August 2022.
  32. ^ Waite, Suzy; Foerster, Jan-Henrik; Hellier, David; Kumar, Nishant (15 February 2020). "Jupiter Snares Rival U.K. Fund Manager in $482 Million Deal". Bloomberg. Retrieved 29 August 2022.
  33. ^ Winfrey, Graham (14 September 2010). "TA Associates hires director in India". Private Equity International. Archived from the original on 26 November 2020. Retrieved 5 August 2022.
  34. ^ Burroughs, Tim (18 April 2012). "TA continues India spree by backing BillDesk". AVCJ. Retrieved 5 August 2022.
  35. ^ McLaughlin, Tim (24 May 2011). "TA Associates opens Hong Kong office". Boston Business Journal. Retrieved 5 August 2022.
  36. ^ Mitt Romney mum on how to regulate big banks, Boston Globe, May 2, 2012.
  37. ^ Tea Party super PAC pours funds into congressional races, Boston Globe, June 6, 2012.
  38. ^ Romney foes put Bain on defensive, Boston Globe, January 11, 2012.
  39. ^ Deng, Chao (24 September 2012). "TA Associates to Buy SpeedCast for $32.2 Million". Wall Street Journal. Retrieved 5 August 2022.
  40. ^ "TA Associates Completes Buyout of SpeedCast". FinSMEs. 25 September 2012. Retrieved 5 August 2022.
  41. ^ Thompson, Sarah; Macdonald, Anthony; Moullakis, Joyce (1 March 2018). "Macquarie trades TA Associates out of Speedcast". Australian Financial Review. Retrieved 5 August 2022.
  42. ^ Beall, Pat (2016-01-12). "'The Big Wink:' How $1.8 billion loan boosted company's founder". The Palm Beach Post.
  43. ^ Mazzucato, Mariana (2020). The Value of Everything. PublicAffairs. p. 146. ISBN 978-1541758247.
  44. ^ Montgomery, Jeff (2018-09-24). "Del. Judge Backs Releases In Millennium Lab Holdings Ch. 11". Law360.
  45. ^ "SkinnyPop co-founder cooking up $10.6 million house in Lincoln Park". Crain's Chicago Business. Retrieved 2018-10-02.
  46. ^ Wernau, Julie. "Skokie-based SkinnyPop partners with private equity firm". Chicago Tribune. Retrieved 2018-10-02.
  47. ^ Beltran, Luisa (30 July 2015). "With SkinnyPop IPO, TA stands to nearly triple its money". PE Hub. Retrieved 5 July 2022.
  48. ^ Vinn, Milana (24 June 2020). "How TA turned $90m into $6.12bn on ZoomInfo". PE Hub. Retrieved 3 August 2022.
  49. ^ González, Ángel (8 October 2015). "Russell Investments' asset-management arm sold for $1.15 billion". The Seattle Times. Retrieved 20 July 2022.
  50. ^ "TA Associates Buys Russell for $1.15B | Chief Investment Officer". Chief Investment Officer. 8 October 2015. Retrieved 20 July 2022.
  51. ^ "TA Associates to acquire majority interest in Access Group from Lyceum Capital". Private Equity Wire. 19 January 2015. Retrieved 30 August 2022.
  52. ^ Brooks, Steve (9 June 2022). "The Access Group is now one of the largest UK headquartered Software companies". Enterprise Times. Retrieved 30 August 2022.
  53. ^ Thompson, Simon (8 June 2022). "Hg and TA Associates make follow-on investment in Access Group | Real Deals". RealDeals. Retrieved 30 August 2022.
  54. ^ Cumming, Chris (13 July 2021). "Hg to Make $1 Billion Investment in Insightsoftware". Wall Street Journal. Retrieved 30 August 2022.
  55. ^ Mendonça, Elisângela (5 January 2021). "TA names Ajit Nedungadi CEO as part of string of global promotions". Private Equity News. Retrieved 30 June 2022.
  56. ^ Parmar, Beena (12 January 2021). "TA Associates elevates insider to CEO, appoints MDs in slew of promotions". VCCircle. Retrieved 30 June 2022.
  57. ^ "ATG confirms plans to float in London next month". Evening Standard. 8 February 2021.
  58. ^ "London Stock Exchange welcomes Auction Technology Group to the Premium Segment of the Main Market". London Stock Exchange. 23 February 2021. Retrieved 30 August 2022.
  59. ^ Mellor, Sophie (31 July 2021). "How London became 2021's hub for hot new tech IPOs". Fortune. Retrieved 30 August 2022.
  60. ^ "TA Associates to buy business software maker Unit4 in $2 billion deal". Reuters. 22 March 2021. Retrieved 20 July 2022.
  61. ^ Cumming, Chris (2 June 2021). "TA Associates Closes Latest Growth Fund at $12.5 Billion". Wall Street Journal. Retrieved 30 August 2022.
  62. ^ Witkowsky, Chris (26 March 2021). "TA pushes innovation to hold certain assets longer with second double-down fund". Buyouts. Retrieved 30 August 2022.
  63. ^ "Side Letter: TA's $1.5bn cure for separation anxiety; Eaton's Shanghai shake-out". Private Equity International. 2 June 2021. Retrieved 30 August 2022.
  64. ^ Primack, Dan (13 July 2021). "Private equity funds skirt responsibility in for-profit college fraud". www.axios.com. Axios. Retrieved 4 August 2021.
  65. ^ "THE THRILL OF DEFEAT IN 1999". highbeam.com. 2001-02-05. Archived from the original on 2017-02-02. Retrieved 2017-01-25.
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