LLR Partners made one exit and a new portfolio investment, besides recapitalizing its position in another, according to a first-quarter scorecard. Also, five of its portfolio firms reported M&As.
Founded in 1999, the Philadelphia-headquartered lower middle market private equity firm has raised more than $5 billion across six funds. It makes early-stage investments in technology and healthcare businesses. In 2023, LLR was recognized by BluWave as a Top Private Equity Innovator for the second consecutive year.
The firm’s lone exit was from WennSoft, a building intelligence and construction management firm that was earlier known as Key2Act. Canada’s Volaris Group announced its acquisition of WennSoft, based in New Berlin, Wis., on Feb. 28 for an undisclosed sum. When LLR invested in the company in 2015, the firm’s principal, Justin Reger, cited its position on Gartner’s Magic Quadrant.
“Key2Act has an impressive, 20-year track record of delivering proven field service solutions that allow customers the ability to streamline operations and help increase revenue,” said Reger. “The company’s domain expertise and industry-specific field service solutions, as evidenced by the Key2Act position on Gartner’s Magic Quadrant, provide a powerful base to capitalize on attractive market opportunities that will help accelerate growth.”
New Investment
In the quarter, LLR made a new portfolio investment in Berkeley Heights, N.J.-based Viventium, which is developing a SaaS-based human capital management solution specializing in the health services sector. Viventium’s existing investors include ABS Capital and Camden Partners, as well as its founders, the Kohn family.
Cal Wheaton, a partner at LLR, said the firm has tracked “Viventium through consistent and thoughtful interactions over the past several years,” before formalizing the relationship with a “majority investment in the company.”
“Viventium earned its leadership position in payroll and HR by combining innovative, agile technology with exceptional services, purpose-built to manage the complexities of post-acute healthcare,” said Sasank Aleti, another partner at LLR.
Recapitalization
LLR Partners, which first invested in Magaya in 2019, participated in a recapitalization round for the maker of supply chain management software for logistics firms. The deal was led by Apax Digital, the growth equity arm of global private equity advisory firm Apax. LLR remains a significant shareholder, the firm said, adding that the new investment would be used to support continued organic growth, platform enhancements and strategic M&A.
“The Magaya team has built a comprehensive shipping, warehousing and accounting solution, further enhanced by world-class services,” said David Reuter, a partner at LLR when the firm made its first investment. In particular, he hailed the “breadth of Magaya’s reach,” extending to over 1,600 customers in more than 75 countries.
M&As
LLR Partners’ portfolio firms announced five M&A deals in the quarter. They are as follows:
- Allmark Door, a Springfield, N.J., commercial door and loading dock solutions provider in the Mid-Atlantic, acquired the Newcastle location of Overhead Door Company of Delmar in Delaware. LLR Partners invested in Allmark Door in May 2022.
- DaySmart, of Ann Arbor, Mich., acquired ReCPro Software, a Warren, Mich., maker of software for parks and recreation companies. LLR Partners invested in DaySmart in 2019.
- Genesee Scientific, of San Diego, Calif., acquired ProSci, a Poway, Calif., supplier of antibodies, proteins and immunoassays for scientific research and diagnostic applications. LLR Partners invested in Genesee in 2021.
- New York-based JW Player, a leading SaaS video platform, acquired London-based InPlayer, a provider of subscription management and identity management technology. In 2021, LLR Partners invested $100 million in JW Player.
- WizeHive, a Conshohocken, Pa., provider of software that enables philanthropic giving and social impact, merged with WeHero, a Bend, Ore., provider of high-impact workplace volunteer and employee engagement solutions. LLR Partners invested in WizeHive in 2021.
