Sun, Feb 18, 2018
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. Chenavari, a $5.4bn hedge fund, told investors it thinks 'we could experience a similar pattern as the 1987 crash'[more]

    From Businessinsider.com: A $5.4 billion hedge fund told clients markets could tumble just like they did in the 1987 crash. In a February 14 letter to clients, London-based Chenavari Investment Managers warned about current market conditions. From the letter (emphasis added): "Our view is that

  2. Investing - Hedge fund Bridgewater makes $22 billion bet against European firms, Hedge funds Steadfast and Suvretta jump onto CSX in fourth quarter, Tepper's Appaloosa boosts Apple, Facebook as others bolt, Third Point buys Netflix and MGM, dumps Bank of America, Moore Capital bought Wynn Resorts, other casino stocks before Steve Wynn resigned[more]

    Hedge fund Bridgewater makes $22 billion bet against European firms From Reuters/USNews.com: Bridgewater has shown its hand in Europe with a $22 billion bet against some of the continent's biggest companies, filings reviewed by Reuters show, part of a bigger shift by the world's largest

  3. Funds Profiles - Brother-run hedge fund up 46% in 2017 says Kelly formula shows diversification is flawed, How a 6,000% profit on a single trade saved a small hedge fund from disaster[more]

    Brother-run hedge fund up 46% in 2017 says Kelly formula shows diversification is flawed From Valuewalk.com: When Jeremy and Michael Kahan consider the notion of diversification, the wince. With a return of 45.8% to end 2017, their stock-picking fund, North Peak Capital, successfully

  4. Investing - Hedge funds hook shipping stocks grappling for recovery, Small cap hedge funds offer alternative for cannabis investing, Top stock-picking hedge funds love gaming, health care and media shares, Hedge funds Steadfast and Suvretta jump onto CSX in fourth quarter[more]

    Hedge funds hook shipping stocks grappling for recovery From Hellenicshippingnews.com: Shipping stocks may still be in the doldrums in the view of many investors, but hedge funds have bet at least $675 million on signs of renewed buoyancy in the industry. Hedge funds made initial f

  5. Outlook - Eaton Vance: Retail volatility products 'the tip of the iceberg' in market turmoil, Quadratic Capital says markets to remain turbulent for some time[more]

    Eaton Vance: Retail volatility products 'the tip of the iceberg' in market turmoil From CNBC.com: While a lot of attention has been paid to retail volatility products that contributed to the recent sell-off, those securities are "just the tip of the iceberg," Eddie Perkin, chief equity i