Everyone interested in the investment world has heard about CCMP Capital. If you read the financial dailies often or the Fortune Magazine insider communication you are bound to come across it. It processes various financial transactions on a daily basis and is a darling to many investors. The franchise has over the years broken down to leveraged buy outs and growth capital. What I understand about these two concepts is that under leveraged buy outs a company acquires a poorly performing company and tries to restructure it using the company’s assets as collateral. Growth capital on the other involves staking ownership on assets or stocks with the hopes that they will increase in value. These two strategies have been employed widely by CCMP capital making it a first class investing company. Following its investment guidelines it has heavily invested in key sectors of the economy such as the energy and health sector. That withstanding it carries other financial activities such as mergers and acquisitions.
It is common knowledge that CCMP manages some of the biggest companies in the world. It has invested in AMC which is an entertainment company. While other investment firms shy away it sees an opportunity to make extra cash for itself and its clients. In demonstrating its prowess and financial savvy it handles and manages its former parent company JP Morgan Chase investment portfolio. We can all agree that for a company that was incorporated a decade ago it has done a remarkable job. The financial industry is about numbers, taking risks and having an eye for investments. Its founders were not lucky people but intelligent and confident individuals who knew what lay in front of them and the hurdles they had to cross. I am impressed how it handled the 2008 financial crisis in spite gaining independence two years before the inception of the financial crunch in 2007.
I hold the opinion that JP Morgan Chase was holding it back and that it is better off on its own, making its own decision without passing through a board for approval. Even though it was the new kid in the block it managed to rise over $ 3.4 billion on its first year of business. I think that is a very exceptional performance by a recently formed firm.
I am inclined to state that Steve Murray was a very influential figure and very instrumental in the formation of CCMP Capital. His experience and expertise went a long way in upholding the values that the firm operates in accordance to. Even after leaving CCMP Capital due to health related issues he still held advisory positions. We all remember fondly how Steve Murray used to grace charity organizations contributing generously.