Ruth’s repurchased the convertible preferred stock for $60.2m, netting the New York-based private equity firm a gross IRR of 60 per cent.
BRS invested in the company in February 2010 to reduce the businesses outstanding debt and provide additional financial flexibility.
Ruth’s portfolio includes a series of restaurants branded Ruth’s Chris Steak House, Mitchell’s Fish Market, Mitchell’s Steakhouse and Cameron’s Steakhouse.
Company CEO Mike O’Donnell said, “We are grateful to BRS for their financial support and strategic guidance through a difficult economic period.
“As our company’s performance continues to improve, we felt this was the appropriate time to repurchase the preferred stock held by BRS.”
BRS co-founder Harold Rosser launched his own restaurant-focused venture a week after leaving the firm in January 2011.
His former firm, which focuses on mid-market consumer goods and services businesses, has previously invested in California Pizza Kitchen, Bravo Brio Restaurant Group and Logan’s Roadhouse.
It is currently seeking investment opportunities for its third partnership.
Copyright © 2012 AltAssets