Understanding Fenway Partners and Capital Partners LLC Connection

Fenway Partners is a private equity firm that has been making headlines in the industry. They were founded in 1996 by a group of experienced investors.

One of the key connections to note is with Capital Partners LLC. Fenway Partners has a long-standing relationship with Capital Partners, and the two firms have collaborated on several investment opportunities.

Capital Partners LLC is a private investment firm that provides strategic capital to middle-market companies. This connection is significant because it highlights Fenway Partners' ability to leverage relationships to drive growth and returns for their investors.

Fenway Partners has made some impressive investments over the years, including Targus Corporation, which was acquired for $382.5 million in 2005.

Targus, a company based in Anaheim, California, was the original creator of carrying cases for portable computers and has since expanded into multiple electronics accessories.

Fenway Partners acquired 1-800 Contacts, a vendor and distributor of brand name contact lenses, for $340 million in 2007.

The company was sold to WellPoint Inc. for approximately $900 million in 2012, resulting in a significant return on investment for Fenway Partners.

Fenway Partners also acquired Riddell Sports Group, a sporting goods manufacturer, for over $100 million in 2003.

Riddell is known for its high-quality football helmets, which are worn by more than 85% of NFL players.

The company has since merged with Bell Sports, another helmet and apparel manufacturer, to form Riddell Bell Holdings.

This merger created a behemoth in the sporting goods industry, with combined revenues expected to break the $600 million mark.

Here are some of Fenway Partners' notable investments:

These investments demonstrate Fenway Partners' ability to identify and capitalize on opportunities in various industries.

Fenway Partners and its executives have been fined a total of $10 million for failing to disclose potential conflicts of interest.

The US Securities and Exchange Commission (SEC) investigated Fenway and found that it and its principals weren't fully forthcoming about payments of more than $20 million to Fenway employees and an affiliated consulting entity.

Fenway Partners counts several big US pensions among its clients, including CalPERS, OPERF, and New York City Retirement Systems.

The SEC charged that Fenway Partners and its principals breached their fiduciary obligation to fully and fairly disclose conflicted arrangements to a fund client.

Fenway Partners and its principals failed to tell a client of its Fenway Capital Partners Fund III that they had rerouted $5.74 million in fees to the firm's affiliate, Fenway Consulting Partners.

The SEC further charged that Mayhew and two former Fenway employees received $15 million in compensation from the sale of a portfolio company for services they had almost entirely provided when they were Fenway Partners employees.

Fenway Partners' spokesperson said the firm was "pleased that the matter has been resolved."

Fenway Partners has a history of poor performance, raising three buyout funds from 1994 to 2006, but failing to deliver good returns.

Investors in Fenway Capital Partners Fund III included OPERF and New York City Retirement Systems, which had committed $50 million and $15 million respectively.

CalPERS had $62 million invested with Fenway Partners as of June 30, 2014.

Fenway Partners agreed to pay over $8 million for not disclosing conflicts of interest, including $7.9 million in disgorgement and $1.525 million in penalties.

The SEC says Fenway Partners and its executives did not fully disclose to investors that a number of transactions involving over $20 million in payments had come out of portfolio companies or fund assets.

Fenway Partners rerouted $5.74 million in fees to its affiliate, Fenway Consulting Partners, without giving the fund client the benefits of those fees via fee offsets for management.

The SEC also charged that Fenway Partners asked fund advisers for $4 million related to an investment in a portfolio company without disclosing that Fenway Consulting would use $1 million.

Fenway Partners and its executives agreed to pay over $10 million to settle the charges, including $8 million in penalties and disgorgement.

Fenway Capital Partners LLC is a private organization founded in 2004 under the name Lexicon Capital Partners.

The firm targets $100 million for a core-plus/value-add fund with a return of 10 to 17 percent.

Gary J. Kovner is the firm's managing partner, who previously founded Home Financing Centers, Inc., a Massachusetts residential mortgage banking operation.

Fenway Capital Partners LLC plans to invest in core-plus and value-add properties in Massachusetts and Florida in desirable core locations.

The firm will deploy anywhere from $5 million to $20 million per investment, with a $20 million co-investment.

Fenway Capital Partners LLC is looking for high net worth individuals and pension funds to invest in the fund.

Now that the market's so hot, the firm is looking to raise more funds and get more people involved, according to Gary J. Kovner.