The Rhode Island-based firm was active on the exit front in 2010, distributing about $2.2 billion to its investors. And Senior Managing Director Glenn Creamer told attendees of the Dow Jones Private Equity Analyst Outlook conference last month that he expects the trend to continue in 2011.
Companies for sale or slated for an initial public offering could include telecommunications software company Telcordia, which Providence Equity bought for $1.35 billion alongside
Providence Equity isn’t alone among buyout firms looking to generate distributions after a slow few years. In January, Nielsen Holdings NV, backed by the
Creamer pointed to several reasons why 2011 could be a big year for exits for the firm. The stock market has lately proven welcoming to IPOs of companies backed by buyout shops, and credit markets are still supporting dividend recapitalizations. On the deal side, buyout shops, big corporations and other strategic buyers are sitting on upwards of $1 trillion that could be invested in deals. Creamer declined to comment beyond his remarks at the conference.
Other Providence Equity companies that could be attractive candidates for a sale or IPO, based on an analysis of the firm’s portfolio and press reports, include Digiturk, a digital television services provider in Turkey in which Providence holds a 47 percent stake and about which the firm has reportedly held preliminary meetings with potential buyers. Another is NEW Asurion, a Nashville, Tenn.-based company that replaces lost, stolen and damaged wireless devices that Providence Equity teamed up with
Providence Equity’s funds have performed consistently, according to return data from top institutional investors such as the