Predict your next investment

Asset/Investment Management
FINANCIAL | Investment Firms & Funds

See what CB Insights has to offer

Funds

21

Service Providers

3

About HPS Investment Partners

HPS Investment Partners is a leading global investment firm with a focus on non-investment grade credit.

HPS Investment Partners Headquarter Location

40 West 57th Street 33rd Floor

New York, New York, 10019,

United States

212-287-6767

Predict your next investment

The CB Insights tech market intelligence platform analyzes millions of data points on venture capital, startups, patents , partnerships and news mentions to help you see tomorrow's opportunities, today.

HPS Investment Partners Web Traffic

Rank
Page Views per User (PVPU)
Page Views per Million (PVPM)
Reach per Million (RPM)
CBI Logo

HPS Investment Partners Rank

Latest HPS Investment Partners News

Why Desktop Metal acquired ExOne (and not the other way around)

Aug 12, 2021

Even more so than Stratasys-Objet and 3D Systems-ZCorp, the acquisition of ExOne by Desktop Metal can be considered a merger, rather than an acquisition, where two companies that operate in a similar segment join forces to leverage each other’s strengths. That is exactly what is going to happen here but what are these strengths? ExOne parts Without getting into the purely financial aspects of this transaction (which would require a dedicated review), there are many elements to consider in what is undoubtedly one of the highest-profile, and perhaps least expected, examples of consolidation to take place in AM . One reason why this union was not expected is that both companies have singled the other one out as their primary competitor, highlighting the superiority of their own vision and technology. But then again, it’s not uncommon to pretend to despise what one secretly admires. Desktop Metal parts In a “standard” transition, you’d think the more established company—ExOne was founded in 1995— would have acquired the new, rising startup with lots of new great ideas. In the world of financially driven ventures and digitalization, it is exactly the other way around: the cash-rich venture-funded startup—Desktop Metal was founded exactly 20 years later, in 2015—acquires the pioneering company to access its more consolidated processed and range of materials. A bit of AM history Bringing together the two companies is the fact that they are both very closely linked to the original inkjet 3D printing processes invented at the Massachusetts Institute of Technology (MIT) for use with metal, ceramic, and sand materials. ExOne began as the “ProMetal” division of Extrude Hone—a business unit created to develop metal 3D printers. The agreement was a forward-looking move by the late Larry Rhoades, who served for 35 years as CEO of Extrude Hone, a global supplier of machining and automation systems in Irwin, Pennsylvania. Within manufacturing, Rhoades held more than 25 patents in nontraditional manufacturing processes for machining, finishing, forming, and measurement, and he was quick to see the value 3D printing could offer manufacturing in terms of geometric design freedom, waste reduction, and increased speed to market. John Hartner, CEO of ExOne At the time, the company was promoting a “new vision for manufacturing”. In 1998, Extrude Hone launched the industry’s first commercial direct metal 3D printing machine using the binder jetting technology invented at MIT— the ProMetal RTS-300 . The first system was installed  at Motorola . Extrude Hone followed that breakthrough quickly in 1999 with the R10, its second binder jet metal 3D printer. From 2002 through 2005, the company launched three new 3D printing systems, including the: R2 metal 3D printer, the X1-Lab, and the S-Print for sand casting in the foundry market. Rhoades was so confident about the future of his 3D printing venture that he sold Extrude Hone to Kennametal, a global supplier of tooling and industrial materials, and transferred the assets of the 3D printing business to The ExOne Company, LLC. Although Rhodes died unexpectedly in 2007 in a scuba diving accident, his company continued to experience rapid growth, even explosive in the 2013-2014 period, however it feel short of fully delivering a new way to produce parts and truly scale up to its fullest potential, although the new senior management team that arrived in 2019 did a lot to modernize the company’s image, products and business model. That’s where Desktop Metal came in. Additive Manufacturing 2.0 In this transaction, Desktop Metal is bringing the money to the table. After going public through a SPAC merger with Trine Acquisition Corp. and HPS Investment Partners the combined company was estimated to have an equity value of up to $2.5 billion. The transaction provided up to $575 million in gross proceeds, made up of Trine’s $300 million of cash held in trust and $275 million in fully committed common stock PIPE at $10 per share, including investments from Miller Value Partners, XN, Baron Capital Group, Chamath Palihapitiya, JB Straubel, and HPS Investment Partners. Ric Fulop, Founder and CEO at Desktop Metal, and serial AM industry entrepreneur. Ric Fulop, the visionary co-founder of Desktop Metal, together with other AM industry visionaries and pioneers such as Professor John Hart of MIT and none other than Prof. Eli Sachs, the inventor of the binder jetting process at MIT in 1993 (the first patent was obtained by ZCorp). As a co-founder at Desktop Metal, Sachs has been instrumental in the development of Single Pass Jetting, the proprietary technology utilized by the Production System. 3dpbm visited Desktop Metal in 2019  and had the unique opportunity to meet both Ric Fulop and Eli Sachs. It now seems like ages ago, not just because it was pre-pandemic, but also because at the time Desktop Metal mainly consisted of its relatively small physical HQ near Boston, MA. Fulop clarified that that was exactly the point: there is no need for massive localized factories, when the goal is creating a highly scalable digital business based on digital additive mass production (DAMP), what the company now refers to as additive manufacturing 2.0 . While 3D printing hardware companies have been focusing on developing and accelerating their build processes, Ric Fulop began looking at AM only from the point of view of production at scale. He is not the only one to have done so (other successful new entries in the AM market such as Carbon and HP have similar approaches) but Fulop is the one who is further ahead in scaling metal AM production. This (and his own background as a serial entrepreneur) is why large investors bought into Fulop’s vision and gave him the money that he used to buy two companies who have developed the most advanced AM technologies in the world, EnvisionTEC and ExOne (along with a couple of very interesting startups) but had not been able to fully scale them. Hand in hand Recently ExOne and Desktop Metal had been involved in a head-to-head competition that was interesting to watch. Both companies announced the ability to process aluminum (a key material for high throughput metal AM production, that has been traditionally very difficult to sinter) through different partnerships, both companies announced constant progress in their production systems and both companies attracted investors’ attention. Desktop Metal may have appeared to look down on ExOne’s “slow machines” while ExOne appeared skeptical of Desktop Metal’s ability to truly deliver the long-awaited Production Systems and rapidly qualify materials for it. In truth, Desktop Metal coveted ExOne’s established technologies and ExOne admired Fulop’s ability to scale businesses and raise funds. Now they are together and this will ultimately be beneficial for the AM industry as a whole. Now the ball goes to Desktop Metal and ExOne’s main competitors in the metal DAMP market: HP and GE Additive (and, to some extent, every other major AM industry player for both the metals and plastics businesses).

HPS Investment Partners Fund History

21 Fund Histories

HPS Investment Partners has 21 funds, including HPS Mezzanine Partners 2019 Fund.

Closing Date

Fund

Fund Type

Status

Amount

Sources

10/5/2020

HPS Mezzanine Partners 2019 Fund

$11,000M

1

4/20/2020

European Asset Value Fund II

$1,500M

1

5/1/2019

HPS Mezzanine Private Investors 2019 LLC

Mezzanine

$844M

1

4/10/2019

Hinode Direct Lending 2017 Fund LP

Subscribe to see more

$99M

10

12/28/2018

Opportunistic CLO Fund II LP

Subscribe to see more

$99M

10

Closing Date

10/5/2020

4/20/2020

5/1/2019

4/10/2019

12/28/2018

Fund

HPS Mezzanine Partners 2019 Fund

European Asset Value Fund II

HPS Mezzanine Private Investors 2019 LLC

Hinode Direct Lending 2017 Fund LP

Opportunistic CLO Fund II LP

Fund Type

Mezzanine

Subscribe to see more

Subscribe to see more

Status

Amount

$11,000M

$1,500M

$844M

$99M

$99M

Sources

1

1

1

10

10

HPS Investment Partners Service Providers

3 Service Providers

HPS Investment Partners has 3 service provider relationships

Service Provider

Associated Rounds

Provider Type

Service Type

Acq - Pending

Counsel

General Counsel

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Subscribe to see more

Service Provider

Subscribe to see more

Subscribe to see more

Associated Rounds

Acq - Pending

Subscribe to see more

Subscribe to see more

Provider Type

Counsel

Subscribe to see more

Subscribe to see more

Service Type

General Counsel

Subscribe to see more

Subscribe to see more

Partnership data by VentureSource

HPS Investment Partners Team

8 Team Members

HPS Investment Partners has 8 team members, including current Chief Administrative Officer, Faith Rosenfeld.

Name

Work History

Title

Status

Faith Rosenfeld

CCMP Capital Advisors, J.P. Morgan Chase & Co., and Goldman Sachs

Chief Administrative Officer

Current

Chris Barnett

Highbridge Capital Management

Senior Vice President

Current

Wendy Lai

Controller

Current

Scot French

Investment Partner

Current

Dennis Miller

Managing Director

Former

Name

Faith Rosenfeld

Chris Barnett

Wendy Lai

Scot French

Dennis Miller

Work History

CCMP Capital Advisors, J.P. Morgan Chase & Co., and Goldman Sachs

Highbridge Capital Management

Title

Chief Administrative Officer

Senior Vice President

Controller

Investment Partner

Managing Director

Status

Current

Current

Current

Current

Former

CB Insights uses Cookies

CBI websites generally use certain cookies to enable better interactions with our sites and services. Use of these cookies, which may be stored on your device, permits us to improve and customize your experience. You can read more about your cookie choices at our privacy policy here. By continuing to use this site you are consenting to these choices.