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Clayton Dubilier & Rice
Clayton Dubilier & Rice was founded in 1978 by Martin H. Dubilier and Eugene B. Clayton, two former McKinsey & Company consultants who applied a then-novel...
Clayton Dubilier & Rice
Clayton Dubilier & Rice was founded in 1978 by Martin H. Dubilier and Eugene B. Clayton, two former McKinsey & Company consultants who applied a then-novel lens to private equity: they believed hands-on operational improvement, not financial engineering, generated superior returns. The firm established its reputation by executing complex corporate carve-outs — acquiring non-core divisions from large corporations and installing seasoned operating executives to transform them into standalone leaders. This 'CEO partnership' model became the firm's structural signature and remains central under Chairman Donald J. Gogel and CEO Nathan K. Sleeper. CD&R's investment strategy revolves around control buyouts, with a particular emphasis on industrial, healthcare, and technology sectors. The firm acquires businesses from corporations, families, or other owners seeking a strategic exit, then embeds operational partners within portfolio companies to drive margin improvement and growth. The firm's portfolio has included names across automotive, packaging, and services. Geographic focus covers North America and Western Europe, where the firm deploys capital through its flagship funds. The firm has raised multiple successive flagship funds, with its most recent vehicle signaling continued institutional appetite. CD&R's team operates from headquarters in New York, with additional presence in London to cover European transactions. The firm's partnership model extends to its operating advisor network, a group of senior executives who take active board or management roles within portfolio companies. CD&R's structural differentiator is its longstanding reliance on what it terms 'CEO partnership' — the formal integration of designated operating executives into the investment process and portfolio governance. This model, pioneered when private equity was still nascent, predates the widespread adoption of operating partner programs and provides the firm with a distinct sourcing advantage in corporate carve-out situations where experienced operational leadership is a prerequisite for bidder credibility.
General information
Firm type
Private Equity
Year founded
1978
Location
Region
North America
Country
United States
City
New York
Corporate office
New York, NY, United States
Principals
Harsh Agarwal
Partner
Michael G. Babiarz
Partner
Andrew Campelli
Partner
Romain Dutartre
Partner
Orla Beggs
Partner, Human Capital
Sector focus
Frequently asked questions
Who runs investment decisions at CD&R?
Investment decisions are led by a partnership group that includes professionals based in New York and London. The firm's day-to-day investing is executed by sector-focused deal teams, with oversight from senior partners including Harsh Agarwal, Michael Babiarz, Andrew Campelli, and Romain Dutartre. The partnership model relies on consensus and deep sector specialization rather than a single star investor.
How does CD&R source proprietary deal flow?
CD&R sources opportunities primarily through corporate relationship networks and an operating partner bench composed of former public-company CEOs and senior executives. This group often identifies carve-out and take-private candidates within industries where they have direct management experience. The firm's preference for complex, off-market transactions — including public-to-private deals like Sealed Air and Morrisons — reduces its reliance on competitive auctions.
Does CD&R participate in fund commitments or only direct deals?
CD&R invests almost exclusively via direct control equity in target companies, not as a fund-of-funds or LP in other private equity vehicles. The firm raises traditional closed-end buyout funds from institutional limited partners but deploys that capital through controlling stakes in portfolio businesses.
What investment stages does CD&R typically target?
CD&R targets mature, cash-flow-positive businesses across the buyout, corporate carve-out, take-private, and complex situation spectrum. The firm avoids early-stage venture capital, minority growth equity, and seed-stage technology bets. Its deal activity concentrates on market-leading companies that are already scaled, often with enterprise values above $500 million.
Which sectors does CD&R explicitly avoid?
CD&R's portfolio shows no meaningful exposure to upstream energy, natural resources extraction, or real estate development. The firm's explicit sector concentration — Industrials, Healthcare, Consumer, Technology, and Financial Services — defines its perimeter, and there is no evidence of dedicated strategies for infrastructure or media and entertainment.
Does CD&R maintain philanthropic structures, and how are they separated?
CD&R operates a dedicated foundation with its own staffing, including a Senior Associate for Foundation Programs. The foundation's activities are organizationally separate from the investment teams, although its mission aligns with creating economic opportunity in communities where portfolio companies operate. The firm treats foundation governance as a distinct function rather than a marketing extension of the deal business.
What is CD&R's known posture on co-investments alongside external GPs?
CD&R does not actively market co-investment slots to external general partners. The firm typically acquires full control of its portfolio companies and leads deals with its own fund capital, occasionally bringing in limited partners directly as co-investors but rarely syndicating with other private equity firms on equal footing.
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