Mar. 28, 2011 (Business Wire) -- Brentwood Associates ("Brentwood"), a consumer-focused private equity investment firm, announced it has completed a recapitalization of its portfolio company, The Teaching Company Holdings, Inc. ("The Teaching Company" or the "Company"). The recapitalization, financed through a new $170 million credit facility, provides a significant return on Brentwood's original investment in the Company, while leaving its ownership stake unchanged.
The Teaching Company is the nation's leading developer and marketer of proprietary, premium-quality, university-level courses targeted at life-long learners. The Company markets its courses under "The Great Courses" brand (www.thegreatcourses.com) and currently offers more than 350 courses, spanning more than 5,000 hours of content across ten subject categories. Under Brentwood's ownership, management has expanded the Company's direct marketing efforts, made significant investments in branding and e-commerce, continued to enhance the visual richness and production quality of the content library, and transitioned to increased digital distribution consistent with the consumption demands of customers.
Eric Reiter, a Partner at Brentwood, commented, "The Teaching Company has demonstrated exceptional financial and operational performance since our acquisition in 2006, having more than doubled its profitability and significantly expanded its content library. The Company is led by an outstanding management team that has successfully executed several important strategic initiatives, including a significant expansion of its marketing efforts and the implementation of a digital distribution platform. With a broad offering of premium-quality, highly-engaging educational content, The Teaching Company is well positioned for accelerated growth as it leverages the many exciting opportunities in digital distribution."
William Barnum, Jr., a Partner at Brentwood and co-founder of the firm's private equity effort, added, "With a dedication to creating engaging courses taught by extraordinary professors, The Teaching Company has significantly broadened its base of passionate and loyal customers. Notwithstanding the challenging consumer spending environment over the last several years, the Company has reached new heights both in terms of financial performance and overall customer satisfaction. With the advent of new mobile technology platforms and the continuing convergence of TV and internet, The Teaching Company has never been better positioned for continued growth."
The financing for the recapitalization was provided by the Senior Secured Loan Program, which is jointly managed by Ares Capital Corporation and an affiliate of GE Capital. GE Capital served as administrative agent, while Ares Capital Corporation served as documentation agent.