Ministry Brands, a provider of cloud-based technology for faith-based organizations and educational institutions, has signed an agreement for an investment by Insight Venture Partners. Ministry Brands is currently a portfolio company of Genstar Capital and Providence Equity. Upon closing of this transaction, Genstar will retain a minority investment in the company and Providence Equity will exit.
Ministry Brands is one of the largest providers of cloud-based services to churches, parachurch ministries and other faith-based organizations with more than 45,000 customers. Parachurch organizations are Christian faith-based organizations (businesses, non-profit corporations, or private associations) that work outside and across denominations to engage in social welfare and evangelism, usually independent of church oversight. Ministry Brands’ products include background checks, church management software, financial accounting software, messaging, coaching programs, giving and payment processing, and website development software. Ministry Brands was founded in 2012 and is based in Knoxville, TN (www.ministrybrands.com).
“Insight Venture Partners has a strong track record of building successful software companies, and we’re pleased to partner with them as we embark on our next stage of our growth,” said Ross Croley, Chief Executive Officer of Ministry Brands. “With the benefit of Insight’s knowledge and domain expertise, Ministry Brands will be able to further expand our solutions to support our customers and the ministries they serve.”
A unique part of the Ministry Brands’ investment agreement with Insight is that the two firms have agreed to form a foundation that devotes a portion of Ministry Brands’ profits to the work of its church and ministry partners.
“Ministry Brands has created a best-in-class business that delivers great value to faith-based organizations and educational institutions,” said Deven Parekh, Managing Director at Insight Venture Partners. “We look forward to working with the team to serve its loyal customer base and to invest in product innovation.”
Insight Venture Partners makes expansion and late stage investments in software, e-Commerce, internet and data-services businesses. Founded in 1995, Insight has raised more than $13 billion and made more than 250 investments. The firm is headquartered in New York (www.insightpartners.com).
Genstar, which had a final close in August 2015 of its seventh fund with $2 billion in commitments, invests from $50 million to $400 million in middle-market companies that have enterprise values from $50 million to $1 billion and EBITDAs greater than $15 million. Genstar targets investments in the financial services, software, industrial technology, and healthcare industries. The firm was founded in 1988 and is based in San Francisco (www.gencap.com).
Providence Equity Partners invests in the media, entertainment, communications and information industries and has approximately $40 billion of capital under management. The firm was founded in 1989 and is based in Providence, RI with additional offices in New York, London, New Delhi, Hong Kong, and Singapore (www.provequity.com).
© 2016 Private Equity Professional • 11-3-16
