Hellman & Friedman’s Hammarskjold to step aside

Industry veteran Philip Hammarskjold is planning to step down as co-chief executive of Hellman & Friedman in January 2019 amid a year-long succession process, according to a document prepared for an investor.

Co-chief Patrick Healy will become sole chief executive, with Hammarskjold moving to executive chairman, according to a Hamilton Lane note prepared for Santa Barbara County Employees’ Retirement System. Healy was promoted to his present role from deputy chief executive in January as part of the transition, the document adds.

Hellman & Friedman declined to comment.

Hammarskjold joined the San Francisco-headquartered firm in 1992. He serves as chairman of the investment committee and as a member of its compensation committee, according to the firm’s website.

The grand-nephew of former UN secretary general and Nobel Prize winner Dag Hammarskjold was appointed chief executive in 2009 when existing chief Brian Powers stepped into the chairman role. Powers replaced co-founder Warren Hellman, after whom the firm is named, in 2003. The latter died in 2011.

Hellman & Friedman has established itself as a one of the industry’s top performers. Fund IV, a $2 billion 2000-vintage, and Fund V, a $3.5 billion 2004-vintage, were both named in the Private Equity Hall of Fame for outstanding returns.

Investors noted several qualities that contributed to the firm’s appeal, including the strength of its track record, the stability and experience levels of the team and its deep industry expertise. Unlike other private equity firms of its generation which have diversified into other strategies, it has stuck to the formula of raising and investing one pool of private equity capital.

Hellman & Friedman is currently in market with its ninth flagship buyout fund, for which it is targeting $15 billion, according to PEI data. Fund VIII, a $10.9 billion 2014-vintage, included commitments from Alaska Permanent Fund, California Public Employees’ Retirement System and Teacher Retirement System of Texas.

Founded in 1984, the firm has raised more than $35 billion of committed capital and invested in over 80 companies.

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