Rizvi Traverse Isn’t As Iconic As Hef, But It Has Entertainment Experience
- Associated Press
You’ve probably heard of Playboy founder Hugh Hefner. His partner in a potential buyout of the magazine isn’t quite as famous.
Hefner is working with Rizvi Traverse Management, a Birmingham, Mich., private equity firm founded in 2004. Hefner, who owns 69.5% of the company’s Class A stock and 27.7% of its Class B stock, is offering to buy all of Playboy’s shares for $5.50 each, a 40% premium over Friday’s closing price. The stock rose 41% to $5.55 Monday. The bid values the company at about $185 million.
In May, Rizvi struck a deal to invest in asset management firm Ziegler Capital Management LLC, which managed about $2.82 billion as of March 31. Rizvi and ZCM’s management bought a 51% stake in ZCM. Another portfolio company is Oxford, Conn.-based Key Air, which provides aircraft management and charter services. Late last year, Rizvi and other equity investors acquired all of Key Air’s debt in a recapitalization.
The firm is no stranger to entertainment deals. Its portfolio includes Summit Entertainment LLC, the movie producer that’s cashing on a certain vampire trilogy (and less so with the animal-revenge epic “Furry Vengeance”), plus the talent and literary agency International Creative Management Inc. And Rizvi is a backer of Newbridge Film Capital, which provides loans to independent movie producers.
Founded in 2004 by Suhail Rizvi and John A. Giampetroni, Rizvi Traverse is headquartered in Birmingham, Mich. with offices in Los Angeles and New York. The firm has a private equity team of at least a dozen investment professionals.
Hefner’s letter to Playboy said Rizvi Traverse “had contacted major lenders regarding potential financing” and is “highly confident ample financial resources will be available to complete the transaction.” Hefner also emphasized that he doesn’t plan to enter merger talks with third parties or sell his stock, citing concern for the magazine’s editorial direction and the company’s legacy.
Whether or not this deal gets completed, Rizvi’s opinion of Playboy is at least more favorable than the outlook of two firms that, in 2009, quickly shot down rumors that they were bidding for Playboy. Golden Gate Capital said “it is not and will not be involved in any way with any potential acquisition” of Playboy, while Oak Hill Capital Partners said “media reports of its interest in acquiring Playboy Enterprises, Inc. are false. At no time has Oak Hill Capital considered this investment nor will it do so in the future.”
-With Laura Kreutzer
-------------------------------------------------------------------------------------------------------------------------------
Source : By Josh Beckerman, http://blogs.wsj.com, http://www.rizvitraverse.com/equity-portfolio.html-------------------------------------------------------------------------------------------------------------------------------
Investment Portfolio
Rizvi Traverse Management has made an equity investment to fund the recapitalization of ICM.
read more
Rizvi Traverse Management has made an investment in Key Air and Keystone Aviation. The company will be managed by the existing Senior Executive team at the corporate offices in Oxford, CT (OXC).
Rizvi Traverse Management has made an equity investment in Summit Entertainment.
Rizvi Traverse Management partnered with the existing management team to purchase a controlling stake in ZCM from The Ziegler Companies, Inc.
Rizvi Traverse Management has partnered with Hugh M. Hefner to acquire Playboy Enterprises, Inc.
Rizvi Traverse Management has made an equity investment in Facebook, Inc.
Rizvi Traverse Management and affiliates have made an investment in Twitter.
Rizvi Traverse Management has made an equity investment in Square Inc.
Rizvi Traverse Management has acquired a majority of SESAC.
Rizvi Traverse Management has made an equity investment in Flipboard, Inc.
No comments:
Post a Comment