ZRG closes significant investment from new and existing shareholders to accelerate growth of global talent advisory platform
ZRG, a global talent advisory firm and portfolio company of RFE Investment Partners, today announced that it has secured a new secondary equity investment from a consortium of new and existing institutional investors led by Timber Bay Partners.
ZRG currently is a market leader in the global executive recruiting marketplace, and also provides interim/on demand talent solutions, human capital consulting services, and recruitment process outsourcing (“RPO”).
This new capital will accelerate ZRG’s acquisition and hiring efforts as the company continues to build-out a full suite of offerings to help clients solve people problems.
In line with this strategic fundraising, ZRG announced on December 6 that is acquired Hub Recruiting, a Tech Enabled RPO provider to address volume hiring needs globally.
The new equity round included increased support from existing investors as well as a number of new institutions. RFE will manage the new equity consortium and will maintain a control equity position.
Concurrent with the new equity investment in the Company, ZRG also announced the closing of a new and expanded senior credit facility led by Truist Bank. Proceeds will be used to refinance existing debt and provide additional capital for future growth.
“We see tremendous opportunity to acquire great businesses in the recruiting and talent advisory areas that will augment our organic growth across all of our business lines. The new equity capital and expanded credit facility provide ample dry powder for our organic and acquisition growth plans,” said Larry Hartmann, CEO of ZRG. “Additionally, we will continue to invest in our disruptive Zi technology platform and grow our interim and consulting businesses in tandem with our core executive recruiting deliverables.”
Michael Rubel, Managing Director at RFE, commented: “ZRG has an exceptional track record of supporting and growing acquired companies that have all thrived under ZRG’s resources and unique culture. This new capital accelerates our strategy of partnering with great new human capital people and brands.”
Atlantic-Pacific Capital served as exclusive global financial advisor and placement agent. Truist Bank served as the sole lead arranger for the new credit facility. Specific financial terms are not disclosed.
ZRG is a global talent advisory firm that is changing the way companies hire and manage talent. ZRG’s data-driven approach to executive and professional search has been changing the way clients think about how to find top talent. The company’s digital Zi platform combines talent intelligence, candidate insights, and process improvement to dramatically deliver executive searches quicker and with proven better results.
About RFE Investment Partners:
RFE Investment Partners is a private equity firm focused on making control investments in established small market companies located in the United States. RFE is a long-standing firm founded in 1980 with over 40 years of experience investing in the lower middle market. RFE’s investment strategy is to transform its portfolio companies from the lower end of the market to fully professionalized and market-leading middle-market companies. RFE is currently investing out of Fund IX. For more information, visit www.rfeip.com.
About Timber Bay Partners:
Timber Bay Partners is an independent private equity firm focused on General Partner-led secondary transactions. Founded in 2016 and headquartered in Cincinnati, OH, the firm’s investment professionals have worked with general partners for more than a decade to structure unique and creative solutions to liquidity issues faced by mature private equity funds.
Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. Truist has leading market share in many high-growth markets in the country, and offers a wide range of services including retail, small business and commercial banking; asset management; capital markets; commercial real estate; corporate and institutional banking; insurance; mortgage; payments; specialized lending; and wealth management. Headquartered in Charlotte, North Carolina, Truist is a top 10 U.S. commercial bank with total assets of $544 billion as of March 31, 2022. Truist Bank, Member FDIC. Learn more at Truist.com.
About Atlantic Pacific:
Atlantic-Pacific Capital is the largest independently owned global placement agent and advisory firm dedicated to raising capital for alternative investments. Since its founding in 1995, Atlantic-Pacific has organically grown into a global organization with an established brand in the private equity community. Over the last two decades, the firm has executed on over 110 capital raising assignments aggregating over $75 billion for an extraordinary group of alternative asset managers.