Brentwood Associates
| Company type | Private |
|---|---|
| Industry | Private equity |
| Founded | 1972 |
| Founder | Frederick Warren, Timothy M. Pennington III, B. Kipling Hagopian |
| Headquarters | Los Angeles , United States |
| Products | Leveraged buyouts, venture capital |
Brentwood Associates is an American private equity firm that concentrates on leveraged buyout transactions. Established in 1972 and based in Los Angeles, the company secured its most recent fund of $1.15 billion in 2017. Between 1980 and 1998, its venture capital division raised over $900 million through nine separate funds prior to becoming independent.
History
The firm was established by Frederick Warren, Timothy M. Pennington III, and B. Kipling Hagopian.
In 1999, partners at Brentwood joined forces with colleagues from Institutional Venture Partners (IVP) and Crosspoint Ventures to launch two specialized entities:
- Redpoint Ventures, which focuses on early-stage investments in information technology
- Versant Ventures, dedicated to healthcare venture capital
That same year, Redpoint secured $600 million for its inaugural fund, marking the largest initial fund raised by a new firm at the time.
Investments
Since its inception in 1972, Brentwood has participated in investments across more than 50 companies spanning various sectors. With assets exceeding $2 billion under management, the firm generally allocates between $20 million and $200 million to each portfolio company. Its leveraged buyout approach targets well-established enterprises, while its venture capital segment emphasizes startups at earlier development phases.
Buyout investments
Brentwood Associates has executed upwards of 50 leveraged buyout deals. Prominent companies within its portfolio include Ariat, Oriental Trading Company, Bell Sports, Bell Automotive, Prince Sports, C.C. Filson, Graphic Controls Corporation, The Teaching Company, Stanley Works, and Zumiez.
In 2007, Brentwood gained a majority ownership position in Zoës Kitchen, which subsequently raised $87.5 million through its IPO in 2014. The firm also acquired Lazy Dog Restaurant & Bar in 2013, followed by purchases of Marshall Retail Group and Z Gallerie in 2014.
In November 2019, Brentwood completed the acquisition of southern-style chicken salad chain Chicken Salad Chick. The company recapitalized MedBridge, a healthcare SaaS provider, in 2021.
Venture capital investments
Prior to spinning out in 1999, Brentwood's venture capital arm was a significant player during the 1990s Internet boom. Key investments in software and internet companies included Wellfleet Communications, Xylan, Documentum, ISOCOR, WebTV Networks, and Freegate. After the spinout, internet and IT investments transitioned to Redpoint Ventures.
Brentwood also maintains a strong track record in healthcare investing, concentrating on firms with strategically valuable products. Several successful healthcare portfolio companies were acquired by leading corporations such as Baxter Healthcare and Medtronic. Noteworthy investments include Keravision, Aradigm, Webster Laboratories, and Interflo Medical.