Two Madison Dearborn executives with a combined 26 years of experience at the Chicago-based private equity firm are leaving to start a new investment house.
Tim Hurd, a managing director who headed Madison Dearborn’s financial services team, and Edward Magnus, a director who also worked on his team, are starting BlueSpruce Investments LP. It will invest in “public, marketable securities” across multiple asset classes, according to a letter from the firm.
“BlueSpruce Investments has the backing and the support of some of the most prominent and sophisticated families and investors in the United States,” they said.
The two have been involved in Nuveen Investments, which became a Madison Dearborn portolio company in 2007. In light of their leaving, Madison Dearborn Co-Chief Executive Sam Mencoff will join the Nuveen board, Madison Dearborn said in a separate letter to investors.
Vahe Dombalagian, a Madison Dearborn managing director in its financial services team, will become the lead deal partner on the investment and he take over the firm’s financial services investment. Dombalagian recently led Madison Dearborn’s recent investment in EVO Payments, the payment processing company, and was also a lead partner on the firm’s profitable investment in TransUnion.
Madison Dearborn also said the it believes “the most compelling investment opportunities” in financial services are in financial technology, information services, consulting, data/analytics and insurance services, “all of which are areas where we have significant expertise and domain knowledge.”
Madison Dearborn has evaluated more than 50 bank deals since the economic downturn, but hasn’t made any deals in that area of the financial services business.
Before joining Madison Dearborn, Hurd was with Goldman Sachs & Co. He currently serves on the boards CapitalSource Inc., Nuveen Investments Inc., Children’s Memorial Foundation, the Latin School of Chicago, and the endowment and investment committee of the Chicago Symphony Orchestra.
Magnus had been with Donaldson Lufkin & Jenrette in the financial institutions group. He is on the board of directors of EVO Merchant Services and Nuveen Investments, Inc.
Both Hurd and Magnus have bachelor’s from the University of Michigan and master’s in business administration from Harvard.