Morgan Stanley pro joins Providence in London

Following the Metalmark spinout, Gustavo Schwed has joined Providence Equity Partners media investment effort in London.

Providence Equity Partners, a private equity firm specialising in media and communications investing, has hired Gustavo Schwed as a managing director in its London office.

Schwed joins the Providence, Rhode Island-based firm from Morgan Stanley Capital Partners, where he was a partner responsible for European private equity. Before joining the private equity division in 2000, Schwed was chairman of the Morgan Stanley’s global emerging markets unit based in Sao Paulo, Brazil. He formerly was a partner at Brazilian private equity firm Bassini Playfair & Associates and, from 1984 to 1995, worked at the private equity unit of Donaldson, Lufkin & Jenrette.

Morgan Stanley Capital Partners, led by Howard Hoffen, recently announced an agreement with its private equity direct investment arm to establish an independent firm called Metalmark Capital LLC, based in New York. The firm will continue to manage roughly $3 billion in funds for their former parent company.

Providence, led by chief executive officer Jonathan Nelson, has been involved in some of the media world’s biggest buyouts. In May, the firm joined The Blackstone Group in purchasing California’s Freedom Communications, the publisher of The Orange County Register, for a reported amount of between $1.5 billion (€1.25 billion) and $2 billion (€1.67 billion). Providence made that investment out of its $2.8 billion Fund IV.

In April, Providence joined Kohlberg Kravis Roberts in the acquisition of satellite operator PanAmSat in a deal worth $3.55 billion (€2.98 billion).