Providence Equity sells management firm stake to investors -source
Sept 24 (Reuters) - Media-focused buyout firm Providence Equity Partners Inc has sold an under 10 percent stake in the company managing its funds to two institutional investors, a person with direct knowledge of the matter said on Monday.
The Providence, Rhode Island-based private equity firm has sold the stake in the company, called the general partner, to a U.S. pension fund and a sovereign wealth fund, the person said on condition of anonymity because the matter is confidential.
All the proceeds from the sale will stay with Providence to fund initiatives such as seeding new funds and expanding globally, the person added. The person did not disclose the value of the transaction.
Providence declined to comment.
Some private equity firms have chosen a private placement of the general partner as a way to raise capital. CVC Capital Partners Ltd has sold a 10 percent stake of the firm to a group of investors, a source familiar with the situation told Reuters last week.
Providence's stake sale contrasts with those of the more diversified alternative asset managers that decide to go public. Carlyle Group LP was the latest major private equity firm to pursue a stock market flotation, completing a $671 million initial public offering in May.
The Wall Street Journal reported on Providence's sale of a stake to investors earlier on Monday.
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