Irving Place Capital
| Company type | Private |
|---|---|
| Industry | Private equity |
| Predecessor | Bear Stearns Merchant Banking (BSMB) |
| Founded | 1997 |
| Founder | John D. Howard |
| Headquarters | New York City , United States |
Area served | Middle-market enterprises in industrial, packaging, consumer, and retail industries |
Key people | John D. Howard (Founder), Phil Carpenter (Co-Managing Partner) |
| Products | Leveraged buyouts and growth capital investments |
| Parent | Independent since 2008 (formerly part of Bear Stearns/JPMorgan Chase) |
Irving Place Capital, initially known as Bear Stearns Merchant Banking (BSMB), is a private equity firm headquartered in New York City. It concentrates on leveraged buyouts and growth capital investments in middle-market enterprises, primarily within the industrial, packaging, consumer, and retail industries. The firm oversees $5.9 billion in committed capital.
Established in 1997 by John D. Howard—who also co-founded Vestar Capital Partners—the company became independent from Bear Stearns' parent company JPMorgan Chase in 2008, adopting its current corporate identity.
Investments
From its inception, Irving Place Capital and its predecessor have cultivated a broad investment portfolio spanning sectors such as retail, consumer goods, healthcare, energy, financial services, packaging, and industrial markets. Notable investments by fund include:
- Fund I* – Aéropostale, Integrated Circuit Systems (), NRT Incorporated, Safety 1st (), Standard Hotel
- Fund II* – CamelBak Group, Multi-Packaging Solutions, New York & Company, Reddy Ice, Seven for All Mankind, Stuart Weitzman, Vitamin Shoppe
- Fund III* – Aearo Technologies, Cabi, Caribbean Financial Group, Chesapeake Packaging, Chromalox, Ironshore, Mold-Rite Plastics, Pet Supplies Plus, PlayCore, Rag & Bone, Universal Hospital Services, Victor Technologies
- Fund III SPV* – Dynojet Research, Ohio Transmission Corporation
These investments exemplify the firm’s approach of fostering growth and expanding market presence within selected industries through proactive portfolio oversight and value enhancement strategies.
1997 - 2008
John D. Howard joined Bear Stearns in 1997 to establish its private equity and merchant banking division. Prior to this role, he served as senior vice president at Wesray Capital Corporation and was a co-founder of Vestar Capital Partners in 1988. In 1998, Bear Stearns Merchant Banking secured its inaugural fund with $200 million from investors.
By 2001, the firm closed its second fund with $1.5 billion in commitments, including a $500 million contribution from Bear Stearns itself. The third fund was raised in 2006 with total commitments reaching $2.7 billion.
Transition to Independence
After the Federal Reserve–facilitated acquisition of Bear Stearns by JPMorgan Chase in 2008, Bear Stearns Merchant Banking became part of JPMorgan Chase. Subsequently, on November 1, 2008, it spun off as an independent entity and rebranded as Irving Place Capital.
Following independence, Irving Place Capital concentrated on sectors such as industrials, packaging, consumer products, and retail. It completed seven investments under its third fund alongside multiple exits. To offer liquidity to limited partners in Fund III while maintaining ongoing investment exposure to future gains, the firm launched Irving Place Capital Partners III SPV, LP in July 2015 with $1.5 billion in commitments. Around this time frame, Phil Carpenter joined John Howard as Co-Managing Partner.
2015-Present
Post-closing its latest vehicle, Irving Place Capital acquired three companies: Ohio Transmission Corporation, a distributor specializing in industrial products and technical services; Dynojet Research, which produces aftermarket performance components and diagnostic tools for powersports; and Coker Tire, focusing on vintage-style tires for classic car collectors. The firm also executed several add-on acquisitions for existing portfolio companies including Alpha Packaging, Ohio Transmission Corporation itself, Pet Supplies Plus, and Universal Hospital Services.
During this period of active portfolio management, Irving Place Capital strategically exited several investments to optimize returns. In 2017 it sold Cabi Holdings, a direct-to-consumer women's apparel company operating in North America and the UK, to Sentinel Capital Partners. Additionally that year it divested National Surgical Hospitals to Surgery Partners with the deal closing in August 2017. Furthermore, thermal technology provider Chromalox was sold to Spirax-Sarco Engineering plc in July 2017.
These targeted acquisitions and divestitures illustrate Irving Place Capital’s strategy aimed at bolstering market position and financial outcomes through deliberate investments and timely portfolio adjustments within its core industries.