Gordon Brothers Gets $300 Million in Financing
Gordon Brothers, the Boston-based advisory, restructuring and investment firm, has received $300 million in financing from Canada Pension Plan Investment Board, increasing the firm’s capital base to more than $1 billion.
“This new investment marks an important milestone in Gordon Brothers’ evolution and builds on our partnership with Stone Point Capital,” Ken Frieze, chief executive officer of Gordon Brothers, said in a statement Thursday. “We look forward to welcoming CPP Investments as we accelerate the growth of our lending, sale leasebacks and investments globally.” Stone Point is an investor in Gordon Brothers.
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Gordon Brothers is involved in a range of activities, from investing in companies or loaning money to them to support growth plans, to conducting appraisals and helping companies sell off assets or liquidate. The firm provides both short- and long-term capital, lends against and invests in brands, real estate, inventory, receivables, machinery, equipment and other assets, and conducts more than $70 billion worth of dispositions and appraisals annually.
The 121-year-old company considers itself a change agent and has been actively investing in brands since 2003. Last February, the firm made a majority investment in Nicole Miller, where the focus will be partnering with licensees to build the designer’s e-commerce business, develop strategic wholesale relationships, and expand the portfolio of licensees and franchisees internationally.
In April 2020, Gordon Brothers acquired Laura Ashley and last week unveiled a partnership with IMG to expand the brand across the globe and create new Laura Ashley apparel, footwear, accessories, beauty, homeware items and hospitality offerings through licensing and retail partnerships and collaborations. IMG is involved in licensing, managing talent and staging events.
Gordon Brothers has also loaned money to online retailer Moda Operandi, Brooks Brothers and has a history of running retail liquidations. Aside from fashion and retail, the firm partners with companies in commercial and industrial sectors. The company has more than 30 offices across five continents.
“We are impressed by how the Gordon Brothers’ global platform uniquely leverages deep appraisal and disposition expertise combined with disciplined underwriting to support businesses undergoing transformation,” Andrew Edgell, global head of credit Investments at CPP Investments, said. “This new relationship with Gordon Brothers broadens our access to the asset-based lending space as we continue to build a diversified portfolio of credit assets.”
Canada Pension Plan Investment Board manages a fund that totaled 550.4 billion Canadian dollars as of Dec. 31. CPPIB, along with Ares Management, acquired the Neiman Marcus Group in a $6 billion leveraged buyout in 2013, and took it bankrupt in 2020. In September 2020, Pimco, Davidson Kempner Capital Management, and Sixth Street acquired Neiman Marcus Group.
