Thayer Hidden Creek

Thayer Hidden Creek
Limited liability company
Industry Private Equity
Founded 1994 (1994)
Headquarters Washington, DC, United States
Key people
 Fred Malek, Founder and Chairman
Products Investments, private equity funds
Website www.thayercapital.com (Site re-directs to HCI Equity Partners homepage)

Thayer Hidden Creek is a Washington, DC-based private equity firm. The firm currently trades under the name HCI Equity Partners and has offices in Washington, DC, Minneapolis, MN and Chicago, IL.[1]

Profile

Since its inception in June 1994, Thayer has invested in over 30 portfolio companies with total revenue in excess of $3 billion.[2] The company is named after Sylvanus Thayer, an early superintendent of the United States Military Academy who is widely considered to be the “Father of West Point.” Thayer founder Frederic Malek is a graduate of USMA.[3][4]

HCI Equity Partners

In 2011 the "Managing Partners and investment team” formed HCI Equity Partners "to assume the management of the funds and operations of Thayer | Hidden Creek Partners.”[5] In 2017 HCI Equity Partners closed a new $400M fund, Fund V. The fund has an activation date of January 2018.[6]

Roadrunner Transportation

Thayer acquired shipping firm Roadrunner Transportation in 2005. Thayer initially shot for a 2008 public offering but reconsidered due to the general economic condition.[7] In 2010 they took Roadrunner public and the firm continues to sell off its shares, in 2015 they sold 2 million shares worth $49,500,000.[8]

Acquisition of Hidden Creek Partners

Founded in 1989 Hidden Creek Partners was an industrial management company specializing in the automotive sector based in Minneapolis, Minnesota. In 2003 Hidden Creek co-founder Scott Rued joined Thayer as a Managing Partner. In 2004 Hidden Creek became intimately involved in Thayer’s operations.[9] Hidden Creek was acquired by Thayer Capital Partners in 2005.[10]

Involvement in Connecticut political corruption

In 2004 the US Securities and Exchange Commission filed a complaint against Thayer for their role in the racketeering case of former Treasurer of the State of Connecticut Paul J. Silvester. The SEC report says that in November 1998 Silvester requested that Thayer's chairman, Frederic V. Malek, hire his good friend William DiBella as a lobbyist. DiBella was paid 0.7% of the value of any investment the Connecticut State Retirement and Trust Fund placed with Thayer, this amounted to $374,500 over the course of the scheme. The SEC contended that DiBella "ultimately performed no meaningful services in connection with the Thayer IV investment and Thayer, TC Partners IV, TC Management IV, and Malek failed to take adequate steps to determine what services, if any, the Treasurer's Associate would, or actually did, perform in connection with that investment."[11] According to the New York Times in 1999 Silvester "pleaded guilty to six acts of racketeering, including three instances of bribery and one count of conspiring to launder money” and agreed to cooperate with federal investigators in their case against DeBella and Thayer.[12]

On May 18, 2007, a federal jury found DiBella and his business North Cove Ventures "liable for aiding and abetting Silvester's intentional violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and the negligent violations by Malek, Thayer and its affiliates of Section 206(2) of the Investment Advisers Act of 1940. In its decision of March 13, 2008, the court reaffirmed the jury's findings."[13]

People

References

  1. ↑ "HCI EQUITY PARTNERS" (PDF). hciequity.com. HCI Equity. Retrieved 30 June 2018.
  2. ↑ Terence O'Hara (October 25, 2004). "The Buyout Business Has Changed, and So Has Frederic Malek". The Washington Post.
  3. ↑ Top Company Profiles - Thayer Capital Partners, L.P. - Portfolio.com
  4. ↑ "A Brief History of West Point". umma.edu. United States Military Academy. Retrieved 6 July 2018.
  5. ↑ "HCI Equity Partners to Assume Management of Thayer | Hidden Creek Funds and Operations". hciequity.com. HCI Equity. Retrieved 30 June 2018.
  6. ↑ "HCI Equity Partners Closes Lower Middle Market Fund, at $400M". finsmes.com. finsmes. Retrieved 6 July 2018. |first1= missing |last1= in Authors list (help)
  7. ↑ "O.C. trucking firm sold". ocregister.com. OC Register. Retrieved 30 June 2018.
  8. ↑ Schuyler, David. "Firm that took Roadrunner Transportation public selling off 2M shares". bizjournals.com. Biz journals.
  9. ↑ "Thayer Capital Partners Announces Organizational Additions". Businesswire.com. Business Wire. Retrieved 30 June 2018.
  10. ↑ "Company Overview of Hidden Creek Partners, LLC". Bloomberg. Bloomberg.com. Retrieved 30 June 2018.
  11. ↑ "ADMINISTRATIVE PROCEEDING File No. 3-11585". sec.gov. US Securities and Exchange Commission. Retrieved 27 June 2018.
  12. ↑ Zielbauer, Paul. "Insiders Squirm as Corruption Case Slowly Unfolds". nytimes.com. New York Times. Retrieved 27 June 2018.
  13. ↑ "Litigation Release No. 20498 / March 14, 2008". sec.gov. US Securities and Exchange Commission. Retrieved 27 June 2018.


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