Madison Dearborn Partners has generated a 5.1x return multiple and a 56 percent net IRR from its sale of cloud-based technology company Fieldglass to German software corporation SAP, according to a source familiar with the matter.
Madison Dearborn declined to comment. Media reports have pegged the value of the sale to be more than $1 billion. The transaction is expected to close during the second quarter of 2014.
Madison Dearborn acquired Fieldglass for $150 million in October 2010, investing from its $4.1 billion Fund VI. That fund was generating a net IRR of 19 percent as of 31 March, according to the source.
Under Madison Dearborn’s ownership, Fieldglass tripled its revenue and EBITDA and doubled its customer base. Fieldglass products are used by companies including United Airlines, Panasonic and Verizon, according to the company’s website.
Last month, Madison Dearborn sold its stake in Nuveen Investments to TIAA-CREF for $6.25 billion. Madison Dearborn reportedly paid a total of $5.27 billion in the 2007 take-private transaction and is expected to break even on the sale.
Chicago-based Madison Dearborn invests in the government and business services, consumer, financial and transaction services, healthcare and telecom, media and technology services sectors.
In 2013, Madison Dearborn distributed $2.1 billion to its investors, exceeding its initial $1.5 billion distribution target, according to the firm’s annual letter to investors. The distributions were led by the sales of portfolio companies including Boise Cascade and Yankee Candle, which Madison Dearborn sold for $1.75 billion in September 2013.