Expedia, Inc. Bellevue, WA (Acquired by InterActive Corp.)
Expedia is one of the world's leading online travel services. TCV first became involved with Expedia through an investment in Vacationspot.com in 1999, which was subsequently acquired by Expedia in March 2000.
Demonstrating TCV’s commitment to the Internet sector, TCV invested $50 million in Expedia in a PIPE transaction in August 2000 and subsequently made several additional open market purchases of Expedia stock in the public market through August 2002. During TCV’s three year involvement with Expedia, the company achieved a number of milestones, including growing annual revenue from under $100 million to nearly $600 million. TCV took an active role in assisting the company’s growth including representing public stockholders as Chair of the Special Committee of Expedia’s Board of Directors that negotiated Expedia’s eventual acquisition by InterActive Corp., a transaction valuing Expedia at $9.4 billion in May of 2003.
Netflix, Inc. Los Gatos, CA (NASDAQ: NFLX)
Netflix is the world's largest online DVD rental service.
Netflix is a classic example of TCV’s strategy of long-term partnerships with management teams, commitment to the Internet sector and crossover investment philosophy. TCV’s relationship with the Reed Hastings, founder and CEO of Netflix, dates back nearly 15 years to an investment in Pure Software (the first company founded by Reed Hastings). TCV made its first investment in Netflix in 1999 and since that time, the company transitioned to an online subscription model that now has six million active members with quarterly revenue growing from under $5 million to over $250 million. TCV invested over $55 million in Netflix, Inc. over four rounds as a private company between February of 1999 and July of 2001. Netflix completed its IPO in May of 2002, at which time TCV made an additional investment, followed by subsequent open market purchases between May and August of 2002. During July and August of 2006, TCV invested an additional $75 million in open market purchases of Netflix stock.
Travelport Ltd., Parsippany, NJ
Travelport Ltd. is one of the world's largest and most geographically diverse travel companies operating over 20 leading brands including Orbitz Worldwide, a leading consumer online travel agent; Galileo, a major global travel distribution system; and Gullivers Travel Associates (GTA), the leading global travel wholesaler.
In August 2006, TCV partnered with The Blackstone Group in a $4.3 billion buyout of Travelport, which was then a Cendant subsidiary. TCV has actively worked with Travelport’s management team to identify and pursue strategic opportunities and assist with executive recruiting. In December 2006, Travelport announced a definitive agreement to merge with Worldspan, a major global distribution system serving travel suppliers, travel professionals, and online travel agents.
RiskMetrics Group, Inc., New York, NY
RiskMetrics Group provides financial risk management through a broad range of research, analytics, data and other products to over 600 institutions worldwide.
Since investing in the company in June 2004, TCV has made customer introductions, provided strategic advice on new products, supported geographic expansion into new markets, and worked with management to identify and pursue acquisition opportunities. RiskMetrics Group has successfully expanded its operations since TCV’s investment in 2004. In November of 2006, RiskMetrics Group announced the acquisition of Institutional Shareholder Services Inc. (ISS). At the time of the acquisition, RiskMetrics Group and ISS announced they will generate over $200M in revenue per year and serve over 2,400 clients worldwide.
Liquidnet Holdings, Inc., New York, NY
Liquidnet is the leading electronic marketplace for anonymous block equity trading in the US, Europe, and Canada. Founded in 2001, Liquidnet was built to solve the inefficiencies that currently affect the institutional trading industry. The platform is currently used by buy-side institutions that collectively manage more than $10 trillion in assets.
In February 2005, TCV co-led a $250 million investment in Liquidnet, representing the largest minority investment in a financial technology company to date. TCV has worked actively with Liquidnet’s management team to identify expansion opportunities, assist with customer introductions, and provide acquisition support. Over the last two years, Liquidnet has substantially grown its member base, expanded operations to Europe, Asia, and Canada, and launched several new products.
Penson Worldwide, Inc. Dallas, TX
The Penson group of companies provides execution, clearing, settlement, custody, and technology infrastructure products and services to financial services firms. The company supports the clearing and technology needs of broker/dealers worldwide through its operations in the US, UK, and Canada.
Since initially investing in Penson in June 2004, TCV has made numerous customer introductions, worked with management to identify and pursue acquisition opportunities, and helped guide the company through its initial public offering. TCV provided capital to help finance an acquisition by Penson in early 2006 and made a further investment at the time of the company’s IPO in May 2006. Since the IPO, TCV has continued to be actively involved with the company, advising management on a number of strategic issues.
Redback Networks, Inc. San Jose, CA (Acquired by Ericsson Telephone Co.)
Redback Networks Inc. manages 50 million broadband connections for 15 of the top 20 telephone carriers worldwide. Redback’s multi-service routing platform delivers next generation broadband services such as VoIP, IPTV and On-Demand Video.
In January 2004, TCV invested $30 million in conjunction with Redback Networks’ plan to emerge from bankruptcy. A year later, TCV increased its position by making an $11 million open market purchase of Redback Networks shares. In May of 2006, while other private investors were liquidating their holdings in a secondary offering, TCV purchased an additional $50 million of Redback Networks’ shares. In the three years that TCV was an investor in the company, it grew revenues from $116 million to over $250 million. In December 2006, Ericsson announced its intent to acquire Redback Networks for $2.1 billion.
Webroot Software, Inc. Boulder, CO
Webroot is a leading provider of anti-malware software for the consumer and enterprise markets. The company is best known for its market leading Spy Sweeper brand of anti-spyware software.
TCV led a $108 million management-led buyout of Webroot in February of 2005, which was the first outside capital accepted by Webroot since its founding in 1997. TCV has actively worked with Webroot’s management team to evaluate strategic opportunities, initiate international expansion, and assist with executive recruiting efforts. Webroot’s customer base has grown to include millions of licensees since TCV’s investment.