PE Weekly: Dealmakers Target the Enterprise—and the Workforce
From office of the CFO recruiting services to coworking spaces, middle-market M&A targets employers and employees with tech and services
Platform Investments
New State Carves out Vast Coworking. New State Capital Partners said this week it acquired Vast Coworking Group, carving the business out of United Franchise Group. Vast operates a network of coworking locations in the U.S. and internationally.
Gryphon Investors Invests in HRSoft. Gryphon Investors, a middle-market private investment firm, has acquired HRSoft. The company provides enterprise compensation management software. Bow River Capital, an existing investor in HRSoft, will retain a minority stake in the company.
NewSpring Leads $140M Investment in Honest Health. NewSpring Healthcare, the healthcare-focused investment strategy of lower middle-market investment firm NewSpring Capital, has led a $140 million investment in Honest Health. The company is a value-based care enablement organization.
Add-ons
Renovus Capital’s SolomonEdwards Acquires CFO’s Domain. SolomonEdwards, a professional services firm, has acquired CFO’s Domain, a consulting and recruiting firm that specializes in the office of the CFO. SolomonEdwards is a portfolio company of Renovus Capital Partners.
Braemont’s Royal Cup Takes Farmer Brothers Private. Braemont Capital-backed Royal Cup Coffee and Tea announced this week it reached an agreement to acquire Farmer Brothers Coffee. The transaction takes Farmer Brothers private, a press release noted.
Riverside’s Cloudpermit Acquires CityReporter. The Riverside Company, an investment focused on the lower-middle market, announced this week that it has invested in CityReporter, which provides asset management and inspections software for municipalities. The investment is an add-on to Riverside portfolio company Cloudpermit.
Gryphon Investors’ Southern Home Services Acquires Dunn’s. Southern Home Services, a consolidator of home service brands, has acquired Dunn’s HVAC, Plumbing & Electrical. Southern Home Services is backed by Gryphon Investors.
Exits
Arlington Capital Exits Forged Solutions. Government services-focused Arlington Capital Partners announced this week the sale of Forged Solutions Group. The company provides complex forgings to aerospace, defense, and space customers. J.F. Lehman & Company acquired the business.
Watermill Exits Cooper Turner Beck to Waterland. Private investment firm The Watermill Group said it reached an agreement to sell Cooper Turner Beck to Waterland Private Equity. Cooper Turner Beck provides critical fastening solutions to the energy, power generation, and construction markets. Waterland, based in Europe, focuses on industrial investments.
Fundraising
Bregal Sagemount Raises $3.5 Billion. Private equity firm Bregal Sagemount announced this week it closed its fifth fund at $3.5 billion, reaching its hard cap. Bregal Sagemount V will focus on high-growth businesses with recurring revenues.
Insights
Bridgepoint Partners with GoldState Music. Bridgepoint, a middle-market investment firm, has partnered with GoldState Music, a music investment platform. Their collaboration will see Bridgepoint provide capital to support GoldState’s dedicated investment program, which targets music-oriented businesses across the globe.
Middle Market Growth is produced by the Association for Corporate Growth. To learn more about the organization and how to become a member, visit www.acg.org.
