In February 2018, Vistage was Acquired by Providence Equity, a Private Equity Fund based out of Providence, Rhode Island for $500MM+.
Learn more about Vistage’s new owner below:
In 2015, the New York Times Article profiled Providence Equity in an article titled “The Private Equity Firm that Grew Too Fast”. Here are some excerpts:
It has been a bumpy few years for ………. Providence. In February, one of the firm’s biggest investments, the security screener Altegrity, filed for bankruptcy in the face of fraud accusations. Providence had its entire $800 million stake wiped out, the largest loss in the firm’s 26-year history.
Altegrity was the latest in a string of bad bets for the firm. Last summer, it lost its entire $460 million investment in a for-profit college company after that company faced multiple investigations.
Hundreds of millions of dollars were erased when the film studio Metro-Goldwyn-Mayer went bankrupt in 2010. A $675 million stake in an Internet retailer has been written down to zero, as has the $400 million it spent on a Dutch child-care group.
The spate of poor investments caused Providence to deliver dismal returns in back-to-back funds.
The full article can be read here: The Private Equity Firm That Grew Too Fast
Here are some other interesting stories relating to Providence Equity:
- Prosecutors sue company owned by Providence Equity
- Club Deals and DOJ Investigation considerations for Private Equity Investors
- Providence Equity investigated for Tax Fraud
- Abry Sues Private Equity Firm Providence Equity
- US brings fraud charges against Providence Equity Portfolio Company that vetted Edward Snowden
- Deceptive Practices by Private Equity owned for profit colleges
Here are recent fund sizes and results for Providence Equity:
Providence Equity’s 2004 and 2007 funds produced IRRs of 4.1% and 6.7% respectively, which put them in the bottom quartile of their peer group. Providence Equity’s 2013 Fund raised 60% less capital than their 2007 Fund (Source: Pitchbook (owned by MorningStar).