Charterhouse is one of the pioneers of leveraged buyouts in the United States, having been founded as a New York merchant bank in 1973. The firm managed institutional private equity funds including a series of funds named Charterhouse Equity Partners for over four decades.
Over the years, proprietary leveraged buyouts have become semi-proprietary private equity transactions at best, and the industry has attracted thousands of firms which compete with each other and strategic buyers to make control investments and, in many cases, minority investments. The private equity investment process has evolved to the point where many transactions have become very efficient auctions resulting in capital becoming a commodity.
As a result of this change in the market, and after over three decades of managing and investing private equity funds and generating positive returns from all of Charterhouse's managed institutional funds, including the firm's most recent fund Charterhouse Equity Partners IV which has realized a gross return exceeding two times invested capital, the two senior executives of Charterhouse Equity Partners formed Charterhouse Strategic Partners.
Charterhouse Strategic Partners decouples the capital provider from the benefits derived from strategic advice and experience. The principals of Charterhouse Strategic Partners invest their own capital into transactions and have long-standing relationships with numerous institutional capital providers. Each relationship is a long-term value creation opportunity independent of each other. This eliminates the conflicts of interest incurred by financial sponsors motivated by realization demands, other portfolio company distractions or simply the making of investment decisions driven by trying to achieve overall fund IRR's.
We provide a solution for executives and shareholders that are looking for experienced partners to provide the skills and credentials necessary for those companies that may be one step away from bringing in institutional capital or transacting with a financial sponsor or strategic investor. Our experience and institutional relationships allows executives and shareholders to find the right partner for their needs, a task all but impossible in today's very structured and efficient investment banker-led auction process.