Boathouse Capital has sold its portfolio company AvidXchange, a provider of accounts payable management software and automated payments services to mid-sized companies. Boathouse has made three subordinated debt investments in the company since 2010. This exit was the result of a debt and equity financing led by Bain Capital Ventures with the participation of Foundry Group, NYCA Partners, KeyBank, Square 1 Bank, and TPG Special Situations Partners.
AvidXchange’s products and services are used to streamline a company’s accounts payable process – from invoice receipt through vendor payment. The company has approximately 5,200 North American customers in multiple industries with some concentrations in real estate, financial services, energy, and construction. AvidXchange was founded in 2000 by Michael Praeger and David Miller and is headquartered in Charlotte (www.avidxchange.com).
During Boathouse’s five year investment AvidXchange completed three add-on acquisitions (including the June 2015 buy of Strongroom Solutions and the November 2014 buy of Piracle Payment Management), entered the payments automation sector, added 350 employees and achieved 500% revenue growth. Avid has been named to Inc.’s list of fastest growing private companies three years in a row and was included in Deloitte’s Fast 500 this past year.
“Avid has performed at an amazing level throughout our partnership and has accomplished an eye-popping transition from a small point solution to a comprehensive financial technology provider. We are grateful to have had the opportunity to invest in Michael Praeger and his team and are extremely proud of the 6x return yielded to our investors,” said Steve Gord, General Partner at Boathouse.
Boathouse invests mezzanine debt and equity in lower middle market companies in partnership with management teams and private equity funds. Boathouse will consider investments from $5 million to $25 million in either mezzanine debt or equity capital in companies with EBITDAs of $1.5 million or greater. The firm manages over $350 million in two separate funds and is based near Philadelphia in Wayne, PA (www.boathousecapital.com).
“I thoroughly enjoyed partnering with the Boathouse team over the past five years. My team and I valued the continued support that Boathouse provided throughout our partnership as we worked to achieve our goals. We are excited about the future of our business and are committed to continuing to achieve excellent outcomes,” said Michael Praeger, CEO and Co-Founder of AvidXchange.
© 2015 PEPD • Private Equity’s Leading News Magazine • 11-6-15