business process outsourcing

Private equity firm EQT, through its eighth fund, has agreed to acquire Cast & Crew Entertainment Services from Silver Lake. Silver Lake acquired Cast & Crew in July 2015 from ZM Capital, Veronis Suhler Stevenson and Emigrant Capital.

Cast & Crew is a provider of payroll and human resources, accounting and financial, workflow and productivity software and services to the film, television, live entertainment and commercial production markets in North America. Production companies use the company’s services to manage (i) payroll processing and related regulatory filings; (ii) production accounting; (iii) workers’ compensation insurance coverage and claims administration; (iv) residuals processing; (v) procurement and purchasing services; (vi) labor relations; and (vii) production incentives guidance and reporting.

Cast & Crew is headquartered in Burbank, CA and has field operations in Albuquerque, Baton Rouge, Wilmington, Vancouver, New York, Atlanta, New Orleans and Toronto. The company was founded in 1976 and is led by CEO Eric Belcher and President John Berkley (www.castandcrew.com).

The buy of Cast & Crew will be made through EQT VIII, a €10.75 billion fund which closed in February 2018 to invest in the healthcare, TMT and services sectors.

“This is an important transaction for EQT’s large buyout business, as it represents our first transaction in the US in the TMT and services sectors,” said Morten Hummelmose, Chairman of EQT Partners and Head of EQT Equity US. “EQT has a long and successful track record of developing technology companies, and we are confident this will be a great partnership that will benefit Cast & Crew and all of its stakeholders.”

EQT invests in medium-sized companies operating in a range of industries in Northern Europe, Eastern Europe, China and the US. Sectors of interest include industrials; consumer goods & retail; services; technology, media and telecom; energy; environment; and healthcare. The firm was founded in 1994 in Sweden and has offices in 14 countries across Europe, Asia and North America (www.eqtpartners.com).

EQT will support Cast & Crew in its next phase of development as the company focuses on expanding its products and services in both current and new verticals. Additionally, EQT will leverage its European presence to accelerate the company’s international expansion, initially focused in Europe.

“We have been very impressed with the company’s performance and vision for continued transformation in the entertainment industry,” said Kasper Knokgaard a Partner at EQT. “We are delighted to have the opportunity to help shape the next phase of growth for Cast & Crew, together with an exceptionally talented group of people being led by CEO Eric Belcher and President John Berkley — supported by an outstanding executive management team. Cast & Crew will be able to leverage the entire EQT platform, including our deep sector expertise and network of industrial advisors, to capitalize on the growth opportunities in current and untapped market segments.”

“We thank Cast & Crew’s outstanding management team and employees for their partnership during a period characterized by impressive growth, accelerating technology innovation and expansion into new entertainment end markets. We hope and expect that the company will achieve continued success under EQT’s ownership,” said Joe Osnoss and Lee Wittlinger, Managing Directors at Silver Lake, in a released statement.

Silver Lake invests in technology and technology-enabled industries.  The firm has over 100 investment professionals located in Silicon Valley, New York, London, and Hong Kong and has $45 billion in assets under management and committed capital (www.silverlake.com).

Moelis & Company and Morgan Stanley were the financial advisors to Cast & Crew and Goldman Sachs & Co. was the financial advisor to EQT.

© 2018 Private Equity Professional | December 11, 2018

Primus Capital has made a growth capital investment in S&W Payroll Services (DBA Netchex Online), a provider of cloud-based payroll, human resources, and benefits software.

Netchex’s cloud-based services include payroll and tax administration, hiring and onboarding (new employee setup), labor cost tracking and benefit management. The company provides single sign-on access to a unified database across all of its applications.  Netchex customers include more than 2,500 employers located across the US but with a concentration in Southeast. The company is headquartered near New Orleans in Mandeville, LA with additional offices in Baton Rouge, Atlanta, Dallas, and Jackson, MS. Netchex was founded in 2003 by Will Boudreaux, CEO, and Stuart Ethridge, President of Sales (www.netchexonline.com).

“As the competition for talent continues to accelerate and the regulatory environment gets more complex, employers increasingly desire integrated human capital management systems,” said Jonathan Dick, Managing Director of Primus. “Netchex offers a complete solution including compliance with the Affordable Care Act to medium and small businesses that historically was only available for very large corporations.”

Primus invests in companies within the healthcare, software, technology‐enabled services, and education industries. Transaction types include management-led buyouts, control and non-control recapitalizations and growth equity investments. The firm was founded in 1983 and is investing through Primus Capital Fund VII, a $353 million fund closed in 2013. Primus is based in Cleveland (www.primuscapital.com).

“We are very excited about Netchex’s continued growth prospects. As we conducted our due diligence, we were impressed by the business model, the market opportunity and breadth of the product offering, all of which position the company to grow at accelerated rates and build on its market position as an innovator,” said Aaron Davis, a Principal of Primus. “This is a natural partnership given Primus’ focus on the human capital management industry and our history of helping growth stage companies realize their potential.”

Seattle-based Cascadia Capital (www.cascadiacapital.com) was the financial advisor to Netchex on this transaction.

Published April 1, 2016 by Private Equity Professional, private equity’s leading news magazine. Copyright © 2016 Sun Business Media, LLC. All rights reserved. 

Private equity firm Owner Resource Group (ORG) has acquired GC Services, a provider of business outsourced services. NB Alternatives Advisors – a subsidiary of Neuberger Berman – co-invested in this transaction with ORG.

GC Services is a provider of accounts receivable management and business process outsourcing services to Fortune 500 companies, large financial institutions and large governmental entities. According to ORG, the company is one of the oldest and largest accounts receivable management companies in the United States.

Sectors of specific concentration for GC Services include banking and financial services, cable and satellite, consumer goods, computer manufacturing, retail, telecommunications, utility, automotive, mortgage, student loans, and various governmental sectors. GC Services was founded in 1957 by Jerold Katz as a collection operation dedicated to accounts receivable management for the oil and gas industry. Today the company has nearly 8,000 employees and over 24 call centers. GC Services is headquartered in Houston (www.gcserv.com).

“I’ve known Owner Resource Group for several years through their involvement in the ARM and BPO industries,” said Frank Taylor, President and CEO of GC Services. “ORG has a track record of facilitating growth while supporting management’s focus on operational execution, which means GC will continue to provide superior customer value. With the current executive management team intact, this makes ORG the perfect partner for GC.”

“We look forward to our partnership with GC and its management team,” said ORG Managing Director Jon Gormin. “GC has an outstanding track record of growth, compliance and customer service which ORG looks forward to supporting. The company is well positioned for expansion while continuing to serve their outstanding customer base.”

Owner Resource Group invests in companies with revenues greater than $15 million. Sectors of interest include manufacturing, distribution, and niche services. The firm is based in Austin, TX (www.orgroup.com).

© 2016 PEPD • Private Equity’s Leading News Magazine • 1-13-16

The Gores Group has entered into an agreement to acquire three business units from the Davis + Henderson Corporation. The three businesses are engaged in business process outsourcing, coupon and rebate processing, and real estate software. The transaction is expected to close in the second quarter of 2013.

These business units will be operated under a newly formed platform company called Millennium Process Group, which is headquartered in East Mall, Ontario with regional offices located in Saint John, New Brunswick and London, Ontario (no website found).

“The Gores Group is excited about the formation of Millennium Process Group as a result of the acquisition of these D+H assets,” said Victor Otley, Managing Director for The Gores Group. “This platform will provide current and future customers a stable service delivery platform focused on the Canadian market. The current operating teams will continue to manage these business units as we look to expand both the scope and depth of service offerings. We look forward to working with management and employees as we build out our services and capabilities independently from D+H.”

The Gores Group makes control investments in non-core, underperforming or undervalued businesses in the United States and Europe. The firm maintains an in-house team of over 60 M&A and operations professionals in the US and Europe. The Gores Group was founded in 1987 and has offices in Los Angeles, CA; Boulder, CO and London, UK (www.gores.com).
Davis + Henderson is a provider of technology services to North American banks, credit unions and other financial services providers. Services provided include loan administration services, payment services, and membership marketing programs. The company is based in Toronto (www.dhltd.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-8-13