Leo Hindery’s InterMedia fund holds close

InterMedia Advisors, the private equity partnership established by long-time media executive Leo Hindery Jr., has held an interim close on its inaugural fund, a $1.5bn targeted vehicle.

InterMedia Advisors has held an interim close on its debut fund, according to a filing with the Securities and Exchange Commission. The fund, InterMedia Partners VII, closed on $241 million (€199 million) of targeted $1.5 billion.

Leo Hindery Jr., founder, InterMedia Advisors

Leo Hindery Jr. announced the launch of InterMedia Advisors in the first quarter of 2005, partnering with Peter Kern, a former executive at Alpine Capital. Hindery has held a number of top posts in the media and communications space, including CEO roles at AT&T Broadband, Global Crossing and The YES Network, the cable station launched to carry the broadcasts of the New York Yankees. Hindery has also authored two books.

Previous InterMedia Partners funds, which go back as far as 1988, were used by Hindery to pursue a rollup in the cable industry. Fund VII, however, is essentially the debut private equity fund from the firm.

When Hindery launched InterMedia Advisors last March, he cited that the firm’s background in the space will help differentiate it from other investors. “We believe that our fundamental industry experience, as investors and especially as operators, will give us a different kind of exposure to…media industry opportunities,” he said. “We see the widening gulf between what strategic buyers are doing and what private equity is doing, and that presents a very appealing set of opportunities for a firm like ours.”

Hindery has worked with private equity groups frequently in the past, partnering with the Blackstone Group on its investment in Tele-Communications Inc., which was acquired by AT&T, and also working with Providence Equity Partners and Goldman Sachs, two early backers of the YES Network.

InterMedia has already made at least one investment, based on published reports, acquiring a stake in the Gospel Music Channel last fall from Constellation Ventures.

Credit Suisse First Boston is serving as placement agent to market the fund. The vehicle has received commitments from 24 accredited investors, according to the SEC documents.