Frontier Capital has completed a significant equity investment in PowerDMS, a provider of document management services.
PowerDMS offers a software-as-a-service, cloud-based compliance and document management system that is used by companies and organization to organize and manage critical documents and industry accreditation standards in order to reduce legal risk and liability. The company’s products also support employee training and testing. Most of the company’s nearly 3,000 customers are active in high-risk, high-litigation industries, including public safety, government and healthcare. PowerDMS was founded in 2001 by its CEO Josh Brown and is headquartered in Orlando (www.PowerDMS.com).
“The team at PowerDMS has worked hard to build a product we are extremely proud of and to create a company culture where customer satisfaction remains our top priority,” said Mr. Brown. “We are excited to partner with Frontier and are confident its expertise in growing software-as-a-service companies will take PowerDMS to the next level and create added value for our customers.”
Frontier typically makes minority and majority equity investments of $15 million to $75 million in software and technology-enabled business services companies that have revenues from $10 million to $30 million. The firm is based in Charlotte, NC (www.frontiercapital.com).
In December 2017, Frontier held a final close of its fifth fund at an oversubscribed $700 million. The firm began fundraising in May 2017 with an initial target of $500 million. The firm’s earlier fund closed in 2015 with $390 million of capital.
“PowerDMS’ exceptional growth and pioneering software solutions highlights the increased demand for companies to limit risk, ensure compliance and improve performance,” said Michael Ramich, a Partner at Frontier Capital. “We look forward to partnering with Josh and the team to continue PowerDMS’ presence as a leader in the policy management software space.”
Ballast Point Ventures, which originally invested in PowerDMS in May 2014, will remain a shareholder in the company and continue to serve on the company’s board of directors. Ballast Point is headquartered in St. Petersburg, FL (www.ballastpointventures.com).
© 2018 Private Equity Professional | January 26, 2018
