Gemspring Capital Management has acquired ClearCompany, a provider of human capital management software, from Primus Capital which invested in the business in August 2018. Gemspring’s investment in ClearCompany was made through its $1.7 billion third fund which closed in January 2023.
ClearCompany’s talent management software platform provides a suite of services used for recruiting, performance management, employee engagement, and analytics. The company products are used by more than 2,000 mid-market and enterprise businesses across 50 industry verticals. ClearCompany, led by CEO and co-founder Andre Lavoie, was founded in 2004 and is headquartered in Boston.
“ClearCompany is at an exciting inflection point, and we are thrilled to partner with Gemspring to pursue a number of compelling growth opportunities,” said Mr. Lavoie. “Gemspring’s extensive strategic and operational experience in scaling software companies make them the ideal partner to support our business as we build out our customer base, expand product offerings, and strengthen our partnerships.”
“We’re extremely impressed by ClearCompany’s longstanding track record of growth and innovation,” said D.J. Andrzejewski, a managing director at Gemspring. “We look forward to partnering with Andre and the team to continue to drive product enhancements, bolster operations, and accelerate ClearCompany’s growth trajectory while maintaining its customer-centric approach.”
Monroe Capital (NASDAQ: MRCC) was the administrative agent and joint lead arranger on a senior credit facility to support Gemspring’s buy of ClearCompany. Monroe provides senior and junior debt financing to middle-market businesses, special situation borrowers, and private equity sponsors. Investment types include unitranche financings; cash flow, asset-based, and enterprise value-based loans; and equity co-investments. The firm was founded in 2004 and is headquartered in Chicago with 10 additional offices throughout the United States and Asia.
Gemspring invests in companies that have up to $500 million in revenue. Sectors of interest include aerospace and defense; business and consumer services; financial and insurance services; industrial services; software and tech-enabled services; healthcare services and specialty manufacturing.
In September 2023, Gemspring acquired Midland Industries, a Kansas City-headquartered distributor and maker of more than 40,000 SKUs of hoses, fittings, valves, and other products used in the industrial, hose, fluid power, plumbing, oil and gas, truck and trailer, and power transmission markets. Midland, led by CEO John Gerber, has over 250 employees and operates 7 distribution facilities in the United States and Canada.
In January 2023, Gemspring closed two funds, Gemspring Capital Fund III LP, its third buyout fund, at $1.7 billion, and Gemspring Growth Solutions Fund I LP, its first non-control investment fund, at an oversubscribed $400 million. With the closing of these two new funds, Westport, Connecticut-based Gemspring now has $3.4 billion of capital under management.
Primus invests from $15 million to $70 million in companies within the healthcare, software/technology, and technology-enabled services sectors. Transaction types include management-led buyouts, control and non-control recapitalizations and growth equity investments. The firm was founded in 1984 and is headquartered in Cleveland with an additional office in Atlanta.
First Analysis Securities was the financial advisor to ClearCompany on this transaction.
© 2023 Private Equity Professional | October 11, 2023
