The Cypress Group is a

private equity Private equity (PE) is stock in a private company that does not offer stock to the general public; instead it is offered to specialized investment funds and limited partnerships that take an active role in the management and structuring of the co ...

company focused on

leveraged buyout A leveraged buyout (LBO) is the acquisition of a company using a significant proportion of borrowed money (Leverage (finance), leverage) to fund the acquisition with the remainder of the purchase price funded with private equity. The assets of t ...

investments in companies across a range of industry sectors. At its peak in the late 1990s and early 2000s, Cypress was among the largest US private equity firms, although by the end of the decade the firm would find itself in the process of winding down its operations.Cypress Group Faces Vote For Survival
New York Post, August 7, 2009 The firm, based in

New York City New York, often called New York City (NYC), is the most populous city in the United States, located at the southern tip of New York State on one of the world's largest natural harbors. The city comprises five boroughs, each coextensive w ...

, was founded in 1994 by the four senior members of

Lehman Brothers Lehman Brothers Inc. ( ) was an American global financial services firm founded in 1850. Before filing for bankruptcy in 2008, Lehman was the fourth-largest investment bank in the United States (behind Goldman Sachs, Morgan Stanley, and Merril ...

' merchant banking group, Jim Stern, Jeff Hughes, Jamie Singleton and David Spalding.Lehman, Seeking Higher Profit, Returns to Merchant Banking
New York Times, November 12, 1996 Cypress has raised approximately $3.6 billion since its inception across two funds raised in 1996 and 1999.

History

The Cypress Group was founded in 1994 by Jim Stern, Jeff Hughes, Jamie Singleton and David Spalding, who had served previously as the senior managing directors of

' merchant banking group. The four founders were responsible for restarting Lehman's merchant banking efforts after the departure of

Pete Peterson Douglas Brian "Pete" Peterson (born June 26, 1935) is an American politician and diplomat. He served as a United States Air Force pilot during the Vietnam War and spent over six years as a prisoner of the North Vietnamese army after his plane was ...

and

Stephen A. Schwarzman Stephen Allen Schwarzman (born February 14, 1947) is an American businessman. He is the chairman and CEO of the Blackstone Group, a global private equity firm he established in 1985 with Peter G. Peterson. Schwarzman was chairman of President Do ...

to found

The Blackstone Group Blackstone Inc. is an American alternative investment management company based in New York City. It was founded in 1985 as a mergers and acquisitions firm by Peter G. Peterson, Peter Peterson and Stephen A. Schwarzman, Stephen Schwarzman, who h ...

, a private equity and investment banking firm. The Cypress Group raised its first institutional private equity fund in 1996 with $1.05 billion of investor commitments. In 1999, the firm completed fundraising for Cypress Merchant Banking Partners II, with $2.5 billion of investor commitments. At the time it was raised, the firm's new fund ranked among the largest raised for leveraged buyout transactions. Ultimately, Cypress II would prove to be the firm's final fund when it announced in 2007 that it would abandon further plans to raise a successor fund.Winding down at Cypress Group
Wall Street Journal, June 18, 2007 Cypress had indicated its intentions to raise $1.5 billion. However, a series of weak investments, particularly in Cypress II, severely impacted the firm's plans to raise a third fund. By 2007, Cypress had lost a significant number of its senior investment professionals. As of 2009, the firm is still managed day-to-day by two of its original founders, Jim Stern and Jeff Hughes. David Spalding assumed a role at his alma mater

Dartmouth College Dartmouth College ( ) is a Private university, private Ivy League research university in Hanover, New Hampshire, United States. Established in 1769 by Eleazar Wheelock, Dartmouth is one of the nine colonial colleges chartered before the America ...

and Jamie Singleton still remains on the firm's board. In October 2009, the firm's Cypress Merchant Banking Partners II will reach the end of its original 10-year term. While the firm is seeking to extend the life of the fund, investors in the fund are currently negotiating an orderly wind-down of the investments in the portfolio.

Investments

Since inception in 1994, Cypress has invested more than $4 billion of equity in more than 30 companies through transactions totalling in excess of $22 billion in size. Historically, Cypress employed an industry-based investment strategy and the firm was structured into six industry groups covering large segments of the economy, including: * Packaging, Building Products, Construction Materials & Retail * Automotive & Aerospace/Defense * General Industrial & Services * Healthcare & Financial Services * Media & Entertainment, Lodging & Leisure * Consumer Products Among the firm's notable investments include: *

Affinia Group MANN+HUMMEL Gruppe is a family-owned manufacturer of liquid and air filter systems, intake systems and cabin air filters headquartered in Ludwigsburg, Baden-Württemberg, Germany. History Adolf Mann and Erich Hummel were the heads of the Stuttga ...

* Amtrol *

Catlin Group Catlin Group Limited was a Bermuda-based specialty insurance and reinsurance company. Catlin operated six underwriting hubs worldwide and operated more than 55 offices worldwide. It owned the largest syndicate at Lloyd's of London, based on 2011 ...

Cinemark Theatres Cinemark Holdings, Inc. (stylized as CineMark from 1998 until 2022 and in all caps since 2022) is an American movie theater chain that started operations in 1977 and since then it has operated theaters with hundreds of locations throughout the A ...

*Cooper Standard *

Financial Guaranty Insurance Company Financial Guaranty Insurance Company (FGIC) is an American monoline bond insurer established in 1983. It faced significant financial difficulties in 2008 which affected its ability to write new business. The firm was acquired in December 2003 ...

Frank's Nursery & Crafts Frank's Nursery & Crafts was an American retailer devoted to the sale of lawn and garden products. It operated a chain of stores, with 170 outlets across 14 states. It specialized in products such as shrubs, trees, accent plants, flowers, and l ...

Infinity Broadcasting Corporation Infinity Broadcasting Corporation was a radio company that existed from 1972 until 2005. It was founded by Michael A. Wiener and Gerald Carrus. It became associated with popular radio personalities like Howard Stern, Opie and Anthony, Don Imus ...

Lear Corporation Lear Corporation is an American company that manufactures automotive seating and electrical systems. In 2019, it ranked #147 and in 2018, it ranked #148 on the Fortune 500 list. Early stages Lear Corporation was launched as American Metal Pro ...

* Loral Aerospace Holdings *

McBride plc McBride plc () is a leading British-based manufacturing business, noted as being Europe's biggest maker of retailer own brand household goods. The business also provides contract manufacturing for brand owners. It is listed on the London Stoc ...

Meow Mix Meow Mix is a product of The J.M. Smucker Company (as of March 23, 2015); a variety of dry and wet cat food known for its advertising jingle. Meow Mix was introduced in 1974 and sells many flavors, including "Original Choice" and "Seafood Medley ...

* R.P. Scherer Corporation *Republic National Cabinet Corporation *Scottish Re Group * WESCO International *Williams ScotsmanWILLIAMS SCOTSMAN SALE SET FOR $675 MILLION
New York Times, April 15, 1997

References

External links

The Cypress Group
(company website) {{Private equity and venture capital Financial services companies established in 1994 Private equity firms of the United States