CCMP Capital Advisors specializes in “growth equity investments and leverage buyouts.” Six months after closing on a $3.6 billion fund, CCMP Capital’s ‘key-man,’ Stephen Murray passed away. This came just one month after he cited, “health reasons” for his immediate departure from the company in February 2015. Stephen Murray was one of the original founders of CCMP.
The death of the former Chief-Executive-Officer’s left many unknowns for the latest fund. Upon release of Murray’s announcement, CCMP’s advisory board, quickly followed with its own public statement, saying that due to the aforementioned, “health related issues,” they would move to permanently replace Stephen Murray CCMP Capital.
One can assume many relevant concerns. But in the end, the only thing that mattered from a business standpoint, was honoring the ‘key-man’ provision; to protect the future of the $3.6 billion fund.
According to information, provided by an inside source, the financial and business news magazine, Fortune, reported that Stephen Murray was forced to step down, due to “substance abuse” problems. This was a direct concerned, when the $3.6 billion fund closed in September.
The concerned was addressed by a dual-provision, which allowed for more than one key man. As it turned out, this clause permitted ‘then’ Chairman, ‘now’ Chief-Executive-Officer, Greg Brenneman, to take over as key man, immediately.
At the time of Murray’s death, the fund was 40% committed and although it was contractually protected by the dual provision; it wasn’t an automatic key man switch. A committee had to vote Brenneman as an appropriate replacement, through a process called, “rolling reinstatement.”
Before founding CCMP, Stephen Murray began his career as a low level trainee in the credit department of Hanover Trust Company. Through hard work, he rose to higher ranking executive positions, being promoted to Vice President of middle market lending, for the same company.
Prior to being named CCMP, the Hanover Trust Company was part of a much larger division of JPMorgan. That was in merger deal in 2000, then in 2005, Stephen Murray was promoted to head of the JPMorgan Buyout Division. Learn more about Stephen Murray CCMP Capital: http://www.wsj.com/articles/ccmp-capital-advisors-gets-backing-to-resume-investing-from-fund-1430946145
Later the next year in 2006, the separate spinoff company, CCMP, was officially named as a single business entity. CCMP was created in order to bring diverse business investments to the table, without presenting the image of favoring the firm.