Hellman & Friedman Overview and Portfolio Performance

Hellman & Friedman is a renowned private equity firm with a long history of successful investments. Founded in 1971, the firm has been around for over 50 years.

Hellman & Friedman has a strong track record of investing in top-tier companies. Their investments have generated significant returns for their investors.

The firm has made some notable investments, including in companies like Visa, PayPal, and Nielsen.

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Hellman & Friedman executes its investment strategy with precision, leveraging its deep industry knowledge, disciplined approach, and global network to identify and capitalize on compelling opportunities.

The firm's investment strategy is characterized by a focused approach, concentrating on large-scale equity investments within specific sectors like software & technology, financial services, healthcare, consumer & retail, and business services.

H&F prioritizes long-term partnerships and investments, aligning with the strategic and financial objectives of exceptional management teams, and adopts a patient and long-term investment horizon, prioritizing sustainable growth and value creation over short-term gains.

This approach allows the firm to support portfolio companies through multiple business cycles, providing strategic guidance and resources to drive long-term success.

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SBCERS, a US public pension fund, recently made $10m commitments to two private equity firms: Hellman & Friedman Capital Partners XI and CVC Capital Partners IX.

This move highlights the fund's focus on diversifying its portfolio and investing in established players in the industry.

Hellman & Friedman Capital Partners XI is a significant investment, with SBCERS committing $10m to the fund.

CVC Capital Partners IX is another notable commitment, with SBCERS also investing $10m in the fund.

By investing in these private equity firms, SBCERS is likely seeking to tap into the firms' expertise and track record of generating returns.

Hellman & Friedman's investment strategy is characterized by a long-term orientation, prioritizing sustainable growth and value creation over short-term gains.

This approach allows the firm to support portfolio companies through multiple business cycles, providing strategic guidance and resources to drive long-term success.

The firm's patient investment horizon is a key differentiator from other private equity firms, enabling them to focus on building lasting relationships and creating long-term value.

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By adopting a long-term perspective, Hellman & Friedman demonstrates its commitment to the success of its portfolio companies, fostering a culture of mutual success and respect.

This approach has been successful in various sectors, including software & technology, financial services, and healthcare, where the firm has made notable investments in companies like PointClickCare and Vantage Group Holdings.

The firm's focus on long-term partnerships and investments sets it apart from firms with shorter investment horizons, allowing for more sustainable and meaningful growth.

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Hellman & Friedman's performance is mapped by internal rate of return and multiple on invested capital across their private equity funds.

The firm's focus on operational improvements has led to significant value creation. They collaborate closely with management teams to identify areas for optimization, implement best practices, and drive cost efficiencies.

Operational excellence is a key driver of value creation for H&F. By working together with management teams, they're able to improve efficiency across all aspects of the business.

Their emphasis on operational improvements has helped the firm achieve success.

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Hellman & Friedman was founded in 1976 by Tom Seifert, Warren Hellman, and Don Frey. Their goal was to create a private equity firm that would focus on investing in medium-sized companies.

The firm's early years were marked by a focus on investing in companies in the consumer and industrial sectors. They also developed a strong track record of investing in companies with significant growth potential.

Hellman & Friedman's first investment was in the company, which they helped take public in 1978. This investment helped establish the firm's reputation as a savvy and effective investor.

In the 1980s, the firm expanded its reach by investing in companies in the technology and healthcare sectors. They also began to develop a strong presence in the European market.

One of the firm's most notable investments during this period was in the company, which they helped take public in 1986. This investment was a major success, generating significant returns for the firm's investors.

Throughout its history, Hellman & Friedman has remained committed to its core values of investing in high-quality companies with strong growth potential. The firm's focus on long-term investing has helped it achieve significant success over the years.

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Hellman & Friedman's portfolio is comprised of 42 accounts, with a total AUM of $105.7 billion. The firm's assets are managed on a discretionary basis for 41 accounts, with a non-discretionary AUM of $0.3 billion.

The firm's AUM breakdown by client type shows that 42% of its assets are managed for pooled investment vehicles, with the remaining 58% managed for other types of clients. Hellman & Friedman's AUM breakdown by non-United States persons is $99.4 billion, while its AUM breakdown by United States persons is $6.2 billion.

Hellman & Friedman has a diverse list of limited partners, including 20 state and local retirement systems, as well as other public and private entities. Here is a list of some of its notable limited partners:

Hellman & Friedman has been involved in several notable transactions, showcasing their investment strategy and approach to partnerships.

One such transaction is the acquisition of Zendesk, a major customer support and sales SaaS company, for $10.2 billion in an all-cash deal. This investment is a testament to the firm's focus on large-scale equity investments in specific sectors.

Hellman & Friedman led a group of investors to purchase Zendesk, with the agreement announced in June 2022. Under the terms of the deal, Zendesk shareholders received $77.5 per share. The acquisition is a significant milestone in the firm's investment portfolio.

The firm's investment strategy is centered around long-term partnerships and investments, aligning with the strategic and financial objectives of exceptional management teams. This dedication to the long haul sets them apart from firms with shorter investment horizons.

Here are some key details about the Zendesk acquisition:

Hellman & Friedman holds final close on $22bn. This is a significant milestone for the firm.

The amount is more than $22bn, making it a substantial investment. I've seen many companies struggle to raise even a fraction of this amount.

Sources told affiliate title Buyouts that the firm also closed a large secondary deal that raised about $2.1bn. This deal is a notable example of the firm's ability to secure significant funding.

The firm combines this secondary deal with the initial fundraising to consider a total of more than $24bn. This is a remarkable feat, and it's clear that Hellman & Friedman has a strong track record of securing investments.

Hellman & Friedman has a diverse portfolio, with investments in various sectors. They have made 15 investments, including PointClickCare, Vantage Group Holdings, and Splunk.

One notable deal is the investment in Paddington Partners LP, with a sold amount of $0.0 million and a current AUM of $1,058.7 million.

Hellman & Friedman manages three funds, including Boston Firms, Boston Hedge Funds, and Cornell Alumni Firms.

The firm's assets under management (AUM) are $105.7 billion, with 42 client accounts.

Here are some of the notable limited partners of Hellman & Friedman:

Hellman & Friedman has also made investments in companies like Change Healthcare Inc, Amsurg Corp, and Artisan Partners Asset Management Inc.

If you're interested in working at Hellman & Friedman, check out their job board for a list of current openings and job vacancies from similar firms.

Mike, the founder of Growth Equity Interview Guide, recommends using his guide to help you stand out from the competition during the hiring process.

To get an idea of the pay at Hellman & Friedman, analysts and associates can expect to earn a median salary of $83,921 and $104,216 per year, respectively.

If you're interested in working at Hellman & Friedman, you can check out their job board for a list of current openings and job vacancies from similar firms.

To get an edge in the hiring process, consider checking out the Growth Equity Interview Guide, which has helped thousands of professionals land roles at top investing firms.

According to Glassdoor, the estimated pay for analysts at Hellman & Friedman is $83,921 per year.

The estimated pay for associates at Hellman & Friedman is $104,216 per year, which is a significant difference from the analyst salary.

Mike, the founder of Growth Equity Interview Guide, has over 10 years of experience in growth/VC investing and has helped numerous professionals succeed in the industry.

To learn more about the growth equity industry and career, check out the Growth Equity Industry & Career Primer.

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The interview process for Hellman & Friedman can be a lengthy and multi-round affair. It typically consists of 4 to 6 rounds of interviews.

In the initial interviews, you can expect to be supervised by the HR team or junior investment professionals. Later rounds will feature more senior folks taking the lead.

The entire process can take several weeks to complete, unless it's an "on-cycle" or "on-campus" recruiting effort.

You can expect a mix of behavioral questions, fit questions, and technical/investing questions during the interview process.

Hellman & Friedman employs rigorous financial analysis to assess investment opportunities and mitigate risk. This thorough approach ensures alignment with its investment criteria and objectives.

The firm evaluates potential investments based on factors such as free cash flow generation, profitability, and return on investment. This disciplined investment approach positions Hellman & Friedman well to capitalize on emerging opportunities.

Despite the challenges in the private equity landscape, Hellman & Friedman maintains a positive outlook for the future. This is supported by its deep industry expertise and ability to identify attractive investment prospects.

By leveraging its global network and strategic insights, Hellman & Friedman can drive value creation for its portfolio companies.

Hellman & Friedman employs rigorous financial analysis to assess investment opportunities and mitigate risk. This approach helps the firm evaluate potential investments based on factors such as free cash flow generation, profitability, and return on investment.

By evaluating these key metrics, H&F can ensure alignment with its investment criteria and objectives. This disciplined approach sets the firm apart from others in the private equity landscape.

H&F's focus on financial discipline enables the firm to navigate economic volatility and market uncertainties effectively. This is a key factor in the firm's ability to drive value creation for its portfolio companies.

The firm's commitment to financial discipline also allows it to capitalize on emerging opportunities across diverse sectors. By leveraging its global network and strategic insights, H&F can identify attractive investment prospects.

Ultimately, H&F's financial discipline is a key driver of the firm's success and reputation as a value-added investor.

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Case studies are an integral part of interviews at firms like Hellman & Friedman because these exercises help firms to assess their candidates’ technical knowledge and communication skills.

Most case studies revolve around investment recommendations and financial modeling.

For junior roles, a cold calling case study may be required as well.

To prepare for case studies, it's helpful to have a guide that tackles these exercises in great detail, like the Growth Equity Interview Guide.

At Hellman & Friedman, case studies are a crucial part of the interview process. They help assess your technical knowledge and communication skills.

Case studies typically revolve around investment recommendations and financial modeling. For junior roles, a cold calling case study may also be required.

To prepare, it's essential to have a solid understanding of investment recommendations and financial modeling.

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