Two Leave Madison Dearborn To Launch Firm

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  • Members of financial services team
  • Dombalagian to head team now
  • New firm, BlueSpruce, to be multi-asset class

Tim Hurd and Eddie Magnus have left Madison Dearborn Partners to start their own firm, according to a letter to investors from the firm, sister Web site peHUB reported.

Hurd was a managing director and head of Madison Dearborn’s financial services team, while Magnus was a director on the same team, Madison Dearborn said. Both Hurd and Magnus are still listed on the firm’s Web site but have already left the Chicago private equity firm, a source said. “All of us here at MDP would like to wish Tim and Eddie the very best as they embark on their new careers,” Madison Dearborn said in the letter announcing the departures.

Hurd and Magnus’ only portfolio responsibility was Nuveen Investments, which Madison Dearborn acquired in 2007 for $5.75 billion. The Nuveen investment comes from Madison Dearborn’s fifth fund, which collected $6.5 billion in 2006. Fund V is producing a net IRR of 3.59 percent, according to June 30 data from the Washington State Investment Board.

Vahe Dombalagian, a Madison Dearborn managing director who is also on the financial services team, will become lead deal partner on the Nuveen investment, the letter said. Dombalagian, who led Madison Dearborn’s investment in EVO Payments, will assume overall responsibility for the firm’s activities in financial services.

Hurd and Magnus have launched a new firm, called BlueSpruce Investments, an announcement from Hurd said. Hurd will be president and CIO of BlueSpruce, while Magnus will be an managing director and head of research, the announcement said. “After a combined 26 years in private equity at MDP, we have decided to pursue our passion of starting our own investment firm focused on public, marketable securities,” Hurd said.

BlueSpruce will invest across multiple asset classes. The firm has the backing and support of prominent and sophisticated families and investors in the U.S., Hurd said. BlueSpruce expects to call down capital late in second quarter after it completes the registration process with the Securities and Exchange Commission, he said in the announcement.

News of Hurd and Magnus’ departure from Madison Dearborn was first reported by ChiFinance.

Luisa Beltran is a senior writer for peHUB.