Tennenbaum Capital Partners

Tennenbaum Capital Partners
Name	Tennenbaum Capital Partners
Type	Private
Industry	Private equity, Alternative investments
Founded	1999
Founders	Martin Tennenbaum
Headquarters	Los Angeles, California
Products	Debt financing, Mezzanine capital, Distressed assets

Contents

Tennenbaum Capital Partners is a Los Angeles–based private investment firm founded in 1999 by Martin Tennenbaum, active in mezzanine financing, credit strategies, and distressed investing across North America and Europe. The firm has been involved in leveraged buyouts, restructurings, and asset-backed lending alongside banks such as Wells Fargo, JPMorgan Chase, and Bank of America and has engaged with corporations including Metro-Goldwyn-Mayer, Toys "R" Us, and Sprint Corporation. Tennenbaum's activities intersect with regulatory bodies and industry groups like the Securities and Exchange Commission, the Federal Reserve, and the Alternative Investment Management Association.

History

Tennenbaum Capital Partners was established in 1999 in Los Angeles by Martin Tennenbaum after careers touching Lehman Brothers, Goldman Sachs, and boutique advisory firms; early fundraising involved institutional investors such as Pension Benefit Guaranty Corporation, California Public Employees' Retirement System, and Teachers Insurance and Annuity Association of America. During the 2000s, the firm expanded into mezzanine and distressed debt markets, competing with firms like Oaktree Capital Management, Apollo Global Management, and Cerberus Capital Management while participating in high-profile restructurings including deals related to Circuit City, United Airlines, and Chrysler. The 2008 financial crisis prompted interactions with federal responses including the Troubled Asset Relief Program and coordination with creditors represented by law firms such as Skadden, Arps, Slate, Meagher & Flom and Kirkland & Ellis. In the 2010s, Tennenbaum opened additional offices and revised strategy amid trends set by Blackstone Group, KKR, and The Carlyle Group as private credit markets grew.

Tennenbaum has focused on subordinated debt, mezzanine financing, and special situations with emphasis on middle-market companies in sectors such as retail, media, telecommunications, and healthcare; the firm structures investments alongside lenders like Goldman Sachs, Morgan Stanley, and Barclays. Its underwriting process references precedent set by investors such as David Bonderman and Steve Schwarzman and uses covenants modeled after transactions involving RJR Nabisco, Time Warner, and ViacomCBS. Portfolio management integrates risk controls familiar to practitioners from Moody's Investors Service, Standard & Poor's, and Fitch Ratings while engaging advisors from Evercore, Lazard, and Houlihan Lokey. Tennenbaum’s playbook involves work-outs, covenant enforcement, and equity kickers similar to strategies employed by Wilbur Ross and Bruce Wasserstein in distressed restructurings.

Funds raised by the firm have competed with vehicles from Ares Management, Alcentra, and Apollo; notable transactions have included mezzanine loans and rescue financings for companies tied to brands such as Toys "R" Us, Linens 'n Things, and Sports Authority. The firm participated in recapitalizations alongside sponsors like Bain Capital and Silver Lake Partners and in creditor committees for restructurings involving Blockbuster, RadioShack, and Hostess Brands. Deals often required coordination with bankruptcy courts in jurisdictions including the United States Bankruptcy Court for the Southern District of New York and counsel from firms such as Jones Day and Ropes & Gray. Tennenbaum’s funds have been measured against performance benchmarks established by Cambridge Associates, Preqin, and Thomson Reuters.

Senior leadership has included Martin Tennenbaum and partners with backgrounds at Lehman Brothers, Salomon Brothers, and Bear Stearns while the firm’s board and advisors have featured former executives from American Express, AT&T, and General Electric. The organizational model mirrors structures used at BlackRock and State Street with investment committees, portfolio monitoring teams, and compliance functions interacting with regulators such as the Commodity Futures Trading Commission and Office of the Comptroller of the Currency. Human resources and talent acquisition have recruited professionals from UCLA Anderson School of Management, USC Marshall School of Business, and Harvard Business School while legal and tax work has been coordinated with Deloitte, PricewaterhouseCoopers, and Ernst & Young.

Tennenbaum’s returns have been compared to peers like Oaktree and Ares, tracked by consultants such as Mercer and Wilshire Associates, with performance claims scrutinized in investor communications overseen by auditors from KPMG and Grant Thornton. The firm has faced controversies typical of private credit managers, including creditor disputes in restructurings involving Toys "R" Us and contested voting issues akin to cases seen with PG&E Corporation and Chesapeake Energy, and has been mentioned in media outlets such as The Wall Street Journal, The New York Times, and Financial Times. Litigation has been litigated in venues like the Delaware Court of Chancery and involved counsel from Skadden, Arps and Jones Day on creditor claims and fiduciary duty questions.

Philanthropic activities by principals have included donations to institutions such as UCLA, Cedars-Sinai Medical Center, and United Way while corporate responsibility initiatives have aligned with investor expectations set by UN PRI signatories and reporting frameworks from Sustainability Accounting Standards Board and Global Reporting Initiative. The firm has supported cultural and education programs linked to organizations like Los Angeles County Museum of Art, The J. Paul Getty Museum, and CalArts and engaged in community lending efforts analogous to programs promoted by Federal Reserve Bank of San Francisco and Small Business Administration. Governance disclosures track best practices referenced by Institutional Limited Partners Association and institutional investors including California State Teachers' Retirement System and New York State Common Retirement Fund.