BC Partners has recruited James Rubin and Daniel Selmonosky from JP Morgan-backed rival firm One Equity Partners as senior partners in its New York office.
Senior partners Raymond Svider and Justin Bateman are also relocating from the firm’s London office to New York in the second quarter of this year. The expansion of the New York office, which was set up in 1991, will change it from being largely a base for the investor relations team to one housing a fully functioning US deal team, according to Svider. It will be the first time the team has set up a deal team outside Europe.
Svider said: “We’re building a business and we’re going to seek the right balance between prudence and aggressiveness.” Market difficulties would continue for the foreseeable future, he said. But over time the firm will look to invest more than $1 billion in the US market each year across several transactions, he said.
He said: “[A return to mega buyouts] is not likely in six months. But you can still complete transactions that are large, such as Migros, which we were able to finance and that was not a minuscule transaction.”
Rubin and Selmonosky were among the founding partners of One Equity in 2001. They led the buyout of market data company Telerate, which was sold to Reuters for $175 million (€113.9 million) in 2005, as well as the Quintiles Transnational $1.7 billion take-private in 2003, exited in January 2007 for an undisclosed sum.
In February 2008, BC Partners completed the $16.6 billion acquisition of US satellite operator Intelsat, persuading the company’s original lenders to provide some of the financing for the deal despite the problems in the worldwide credit markets.
Rubin said the Intelsat deal was the kind of deal he had joined the firm to do. “BC decided they liked the satellite business and knew the sector. They weren’t waiting for it to land in their laps.”
BC Partners continues to invest its €6 billion ($9.2 billion) European fund, which was raised in 2005 and is less than 50 percent invested, Svider said. Capital for the firm’s US investments will come from this fund.
Last month BC Partners led the largest European buyout signed since credit market problems began, the YTL3.9 billion ($3.8 million; €2.5 million) acquisition of Turkish supermarket Migros Türk