Zell/Chilmark Fund

Overview

Zell/Chilmark Fund is a private equity firm based in Chicago, Illinois, focusing on distressed securities and corporate restructuring. The fund was established in 1990 as a partnership between Sam Zell and Chilmark Partners, with an initial capital commitment of $1 billion. It specializes in acquiring and revitalizing underperforming companies across various industries, including retail, media, healthcare, transportation, and logistics. The fund's investment strategy involves purchasing assets, debt, and equity of companies with a fair market value of at least $100 million, aiming to enhance their operational performance and financial stability. Over the years, Zell/Chilmark Fund has been involved in several notable transactions, such as acquiring Carter Hawley Hale Stores in 1991, which was later sold to Federated Stores (now Macy's, Inc.) in 1995. In 1992, the fund invested $250 million in Revco, a drugstore chain in bankruptcy, and received $363.8 million when Rite Aid acquired the brand in 1995. Additionally, Zell/Chilmark Fund acquired an interest in Jacor, a radio broadcast group, which was sold to Clear Channel Communications in 1999. These investments reflect the fund's focus on corporate restructuring and rejuvenation situations, aiming to unlock value in distressed assets and companies. The fund's approach combines financial expertise with operational improvements to transform underperforming businesses into profitable entities. By leveraging its experience in managing distressed assets, Zell/Chilmark Fund continues to seek opportunities to invest in companies with significant turnaround potential, contributing to the revitalization of various sectors within the economy.

Investment Focus

• Companies with a fair market value of at least $100 million
• Distressed or underperforming businesses with turnaround potential

Portfolio Companies