Tue, Mar 19, 2024
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Private Equity Strategies

Movers and Shakers: TA Associates Takes Majority Stake In Accruent

Monday, December 02, 2013

By: Bailey McCann, Private Equity Strategies

Boston-based TA Associates, a global growth equity firm is taking a majority stake in Accruent. Accruent provides real estate and facilities management software and has been in business since 1995. TA took over the majority interest from another private equity firm, Vista Equity Partners, which will still maintain a significant, although not controlling interest in the business.

Accruent provides market planning, site selection, project management, lease administration, facilities and space management software that is purpose-built for specific industries. TA Associates makes growth equity investments globally, and has to date raised approximately $18 billion in capital and invested in more than 430 companies.

Vista Equity Partners has had a four-year interest in the firm, overseeing four strategic acquisitions. Accruent is now the largest independent provider of this type of software. The customer base has grown from 400 to over 1,200 customers that use the company’s software in 56 countries.

Typically, growth equity stories go to newer companies, but Hythem T. El-Nazer, a Director at TA Associates explains that TA still sees significant opportunities for growth. “Over the last decade or so we have done several transactions where we are recapitalizing a business and partnering with existing investors. I think it was a real positive in our mind that Vista wanted to stay,” he tells Private Equity Strategies. “This is a new relationship for us with Vista, but we are very comfortable with the team.”

In a recent report, Gartner estimates that, “By 2015, more than 75% of the Forbes Global 2000 companies will manage the No. 2 enterprise budget item (facilities) with Integrated Workplace Management Systems (IWMS). The C-suite is beginning to take notice of the enterprise’s second largest budget item — the life cycle of its facilities portfolio — and to seek an integrated solution to its management.”

Over the last four years, Accruent has updated its business model and products from on-premise software to cloud-based solutions that are easier and less expensive for customers to implement. One hundred percent of the company’s new software revenue is now derived from cloud products. The company has posted 15 consecutive quarters of EBITDA growth while increasing customer satisfaction by 39% and attaining customer retention of 96% during this period.

Over the near term it looks like Accruent will remain private, when asked about an exit strategy, El-Nazer, said, “When we make our investments we don’t always look at an exit strategy. We believe that as the company executes there will be a variety of opportunities to consider. Accruent has many of the hallmarks of a TA company; it is growing and has a solid product offering. The market for their services is still fragmented and we think that will provide organizing and acquisitional opportunities for us to take advantage of.”

He expects similar transactions over the coming year. “2013 was similar to 2012 for us – very active dealflow. We expect that to continue through 2014.”

 
This article was published in Opalesque's Private Equity Strategies our monthly research update on the global private equity landscape including all sectors and market caps.
Private Equity Strategies
Private Equity Strategies
Private Equity Strategies
Private Equity Strategies


Today's Exclusives
Today's Other Voices
More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1