Saul A. Fox
| Company type | Private |
|---|---|
| Industry | Private equity |
| Founded | 1996 |
| Founder | Saul A. Fox |
| Headquarters | Woodside, California , United States |
| Products | Leveraged buyout deals |
| Website | www |
Fox Paine & Company is a private equity firm that focuses on leveraged buyout deals. Established in 1996 by Saul A. Fox, a former partner at Kohlberg Kravis Roberts, the firm expanded in 1997 by bringing on W. Dexter Paine III, previously with Kohlberg & Co., as a partner. Following legal disputes in December 2007, the partnership dissolved: Fox retained the firm's name, while Paine launched Paine & Partners alongside the original Fox Paine investment team.
The firm’s investment portfolio spans multiple sectors including specialized property and casualty insurance, software, semiconductors, agribusiness, healthcare, energy, telecommunications, industrials, consumer personal care products, and medical diagnostic devices.
Initially located in Foster City, California, Fox Paine has since relocated its headquarters to Woodside, California.
History
Prior to founding Fox Paine, Saul Fox worked as a tax attorney at Latham & Watkins and was a partner at Kohlberg Kravis Roberts. After a 12-year tenure at KKR, he established Fox Capital, Inc. in November 1996, operating under the name "Saul Fox & Company." To attract investors, advisors recommended adding a partner, leading to the recruitment of Dexter Paine in 1997. Paine brought experience from investment banking and private equity roles at Bankers Trust, Robertson Stephens, and Kohlberg & Co. The two had previously collaborated on successful deals such as the leveraged buyout of Motel 6.
In April 1998, Fox Paine secured $500 million for its inaugural fund ("Fund I"), which was fully deployed by October 1999 across seven acquisitions. These included ACMI Corporation (exited June 2005), Alaska Communications (March 2006), Maxxim Medical (September 2003), United American Energy Corp. (October 2003), among others.
By early 2001, the firm raised $1 billion for its second fund ("Fund II"), surpassing its initial $750 million goal. Fund II achieved an impressive internal rate of return (IRR) of 30.7%. Key investments comprised Advanta (a European agronomic seed producer), Erno Laszlo, L'Artisan Parfumeur, Paradigm B.V., Penhaligon's, Seminis, United America Indemnity (now Global Indemnity Group), and VCST Industrial Products.
Fox Paine earned acclaim as one of the West Coast’s leading private equity firms known for innovative approaches to complex transactions.
In 2005, tensions arose regarding plans for a third fund. Paine advocated proceeding with fundraising while Fox favored concentrating on managing existing assets. The February 2006 Newco Agreement permitted Paine to initiate "Fund III" under a new management entity ("Newco"), with Fox remaining CEO of Fox Paine & Company. Under this arrangement, Paine was granted conditional rights to use the Fox Paine brand and resources for Fund III but operated independently. Fox invested $5 million for a 25% ownership but did not participate in day-to-day management.
The partnership quickly deteriorated after this agreement. Between 2006 and 2007, conflicts emerged over employee transitions from Fox Paine to Fund III and alleged undisclosed portfolio sales. Litigation commenced in August 2007 with both parties accusing each other of breaching contracts and fiduciary responsibilities.
The December 2007 settlement awarded Fox control over Fund II assets and the Fox Paine name; meanwhile, Paine retained interests in Fund III and legacy Fund I holdings. Subsequently, Paine rebranded his enterprise as Paine & Partners (later known as Paine Schwartz Partners) but continued sharing office space without formal ties.
Additional disagreements led to over four years of legal proceedings that concluded with an out-of-court resolution in August 2012.
Following this period, Fox Paine concentrated on optimizing and exiting remaining Fund II investments. In August 2020, Global Indemnity Group, LLC—the firm's final active investment—completed its re-domestication process to the United States.
See also
- Green, Leslie. "For Saul Fox, Larger Isn’t Necessarily Better in Buyout Transactions." Buyouts, May 15, 2000
External links
- Fox Paine (official website)