Clearlake Capital Group

Background

Clearlake Capital Group, L.P., founded in 2006, is a private investment firm headquartered in Santa Monica, California, with additional offices in Dallas, London, Dublin, Luxembourg, Abu Dhabi, and Singapore. The firm specializes in private equity, credit, and related strategies, focusing on sectors such as technology, industrials, and consumer services. Clearlake's mission is to partner with experienced management teams, providing patient, long-term capital to dynamic businesses that can benefit from its operational improvement approach, O.P.S.®

Key Strategic Focus

Clearlake employs a sector-focused investment strategy, targeting technology, industrials, and consumer sectors. The firm seeks to invest in both private and public transactions across the capital structure, including buyouts, corporate divestitures, recapitalizations, and reorganizations. Clearlake differentiates itself by utilizing its O.P.S.® approach, emphasizing operational improvements, strategic growth, and management team enhancements to drive value creation.

Financials and Funding

As of 2024, Clearlake Capital Group manages over $90 billion in assets under management (AUM). The firm's fundraising efforts have been substantial, with its seventh flagship private equity fund closing at over $14 billion in commitments in 2022. Clearlake's growth has been marked by strategic acquisitions and investments, including the purchase of MV Credit from Natixis in 2024, which expanded its credit business by approximately $5 billion.

Notable Investments and Acquisitions

Clearlake has a history of significant investments and acquisitions across its core sectors:

• Technology: In 2021, Clearlake acquired Cornerstone OnDemand, a NASDAQ-listed software company, for $5.2 billion, taking the company private.

• Industrials: The firm has invested in companies like Syncsort and Vision Solutions, which were merged and later rebranded as Precisely. Clearlake reacquired Precisely in 2021 for $3.5 billion.

• Consumer Services: In 2014, Clearlake acquired women's clothing company Ashley Stewart for $18 million after its bankruptcy filing and sold it in 2016 for over $140 million.

Additionally, in 2022, Clearlake co-led the acquisition of Chelsea Football Club, holding approximately 60% ownership and sharing joint control with Todd Boehly.

Leadership Team

Clearlake's leadership comprises experienced professionals with diverse backgrounds:

• Behdad Eghbali: Co-Founder and Managing Partner, previously with TPG Capital.

• José E. Feliciano: Co-Founder and Managing Partner, former investment banker at Goldman Sachs and CFO of govWorks.

• Fred Ebrahemi: Partner, Chief Operating Officer, and General Counsel, with prior roles at Platinum Equity Advisors and Morrison & Foerster.

• Pedro Urrutia: Partner, Managing Director, and Chief Financial Officer, formerly COO of Tennenbaum Capital Partners.

• James Pade: Partner and Managing Director, with experience at TowerBrook Capital Partners and Credit Suisse.

• Arta Tabaee: Partner and Managing Director, previously with H.I.G. Capital and TPG.

• Paul Huber: Managing Director, with prior roles at Financial Technology Partners and Thoma Bravo.

• Dan Groen: Managing Director and Co-Head of Business Development.

Competitor Profile

Market Insights and Dynamics: The private equity industry is highly competitive, with firms vying for attractive investment opportunities across various sectors. Clearlake's focus on technology, industrials, and consumer services positions it within a dynamic market landscape.

Competitor Analysis: Clearlake's key competitors include:

• Blackstone Inc.: A leading global investment firm with diverse investment strategies.

• KKR & Co. Inc.: A global investment firm specializing in private equity, energy, infrastructure, and real estate.

• EQT AB: A Swedish investment firm focusing on private equity, infrastructure, and real estate investments.

• CVC Capital Partners: A global private equity and investment advisory firm.

• TPG Inc.: A global alternative asset firm with investments across various sectors.

These firms are recognized for their substantial assets under management and diverse investment portfolios.

Strategic Collaborations and Partnerships

Clearlake has engaged in strategic partnerships to enhance its market position:

• MV Credit Acquisition: In 2024, Clearlake acquired MV Credit from Natixis, expanding its presence in the private credit market and increasing its AUM to over $90 billion.

• Halen Brands Partnership: In 2016, Clearlake partnered with Halen Brands to launch Better For You Holdings, focusing on investments in emerging food and health & wellness trends.

Operational Insights

Clearlake's sector-focused approach and O.P.S.® methodology provide a competitive advantage by emphasizing operational improvements and strategic growth. The firm's flexibility in investing across the capital structure allows it to adapt to market conditions.