FS&T

Collin Roche Managing Director, GTCR

Aaron Cohen Managing Director, GTCR

Collin Roche, Aaron Cohen Managing Directors, GTCR

Acquisition Activity

20

platform acquisitions*

*Additional information

Acquisition Activity

$12 +

billion of total purchase
price since 2000.*

*Additional Information

Acquisition Activity

130

add-on acquisitions*

*Additional Information

Acquisition Activity Since 2000
Additional Information

Financial Services & Technology

GTCR has a long history of investing in financial services and financial technology companies.

Financial services investment opportunities include the full spectrum of business models involving the bearing of risk and the management of capital. Our firm tends to focus our investments on less cyclical areas where risk-adjusted returns can be more consistently attractive.

Our investment opportunities encompass those businesses around the financial services complex. These businesses often serve as vendors to financial services companies, or they participate in the delivery of a financial service or product to businesses or consumers. With organic and inorganic growth, and the inherent operating leverage of the business model, many financial services and technology companies exhibit attractive margin expansion and earnings growth.

In both prosperous and challenging economies, there are critical factors to be weighed for private equity investment in financial services and technology. GTCR’s sector expertise and strong relationships with industry experts, leaders and analysts help to identify untapped opportunities in the new financial landscape.

Portfolio Company

Callcredit Information Group

Callcredit Information Group is a leading credit reference and marketing services provider to the UK’s largest financial institutions and organizations in the retail banking, consumer lending, insurance, telecom, utilities and public sectors, among others. The company provides innovative consumer data, software and analytics solutions to help businesses make smarter, more informed decisions throughout the customer life cycle. Callcredit is headquartered in Leeds, England, and employs approximately 1,000 professionals in Leeds, Hatfield, Kent, Bath, London, Swindon and Warrington. The company has international offices in Kaunas, Lithuania; Tokyo, Japan; Shanghai, China; and Dubai, UAE.

Location: Leeds, England

Phone: +44 (0) 1133.884300

Initial Investment: 02/14/2014

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Mike Gordon

Mike Gordon is chief executive officer of Callcredit. Mr. Gordon joined Callcredit in November 2014 from Fair Issac Corporation, where he was responsible for overseeing the company’s global sales, services and marketing operations. Prior to assuming that role in 2012, he served as the company’s vice president and managing director for Europe, the Middle East and Africa. Mr. Gordon has over 13 years of experience within the financial services space, spending the majority of his time focused on consumer credit and growing international markets. Mr. Gordon is an industrial engineering graduate from Northwestern and also holds an MBA from the University of Chicago.

Please click here for a complete list of portfolio company investments made by GTCR since its inception as well as past representative management leaders. Please see Terms of Use for important additional information
Portfolio Company

Convergex

Convergex is a provider of global brokerage and trading-related services for institutional investors and financial intermediaries. Headquartered in New York, the company’s products and services span the investment life cycle and are designed to enable customers to achieve improved results through operational and workflow efficiencies, execution and analytical tools and highly personalized service.

Location: New York, NY

Phone: 800.367.8998

Initial Investment: 10/02/2006

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Eric W. Noll

Eric W. Noll is president and chief executive officer of Convergex. Prior to joining Convergex, Mr. Noll was, from 2009 to 2013, executive vice president of Transaction Services, NASDAQ OMX, Inc. in the U.S. and UK, where he was responsible for all U.S./UK equity, options and futures exchanges—NASDAQ, NOM, PHLX, PSX, BX, BX Options, NFX and NLX. In this role, he helped manage and grow relationships with broker-dealers and investors (buy side) for equities, options and futures.

From 1994 to 2009, Mr. Noll was managing director with Susquehanna International Group, where he managed external and exchange relationships and was responsible for strategic planning and new product development. From 1993 to 1994, Mr. Noll was with the Philadelphia Stock Exchange, where he was assistant vice president of strategic planning and new product development, and from 1990 to 1993, he was manager of strategic planning at the Chicago Board Options Exchange.

Mr. Noll earned his MBA from Owen Graduate School of Management, Vanderbilt University, with a finance concentration. He received his AB from Franklin and Marshall College, with a double major in government and economics.

Please click here for a complete list of portfolio company investments made by GTCR since its inception as well as past representative management leaders. Please see Terms of Use for important additional information
Portfolio Company

Opus Global Holdings

Opus Global represents GTCR's second partnership with CEO Doug Bergeron, who previously led VeriFone. Based in Palo Alto, California, Opus is focused on building a leading platform of software capabilities to help Global 2000 companies manage their risk and compliance requirements.

In July 2014, Opus acquired Hiperos, a provider of SaaS third-party management solutions that enable many of the world's largest companies to manage and monitor the risks and performance of over 300,000 third-party relationships. Hiperos serves blue-chip corporate customers across a range of industry verticals that include financial services, technology, energy, pharmaceuticals and real estate.

In September 2015, Opus completed the acquisition of Alacra, a provider of hosted workflow solutions that support financial institutions' mission-critical compliance and data-management objectives. Alacra aggregates and enriches data from internal and third-party sources, enabling its customers to improve the efficiency and effectiveness of internal processes, including client onboarding and know-your-customer compliance.

Location: Palo Alto, CA

Phone: 650.763.9101

Initial Investment: 09/25/2013

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Doug Bergeron

As CEO of VeriFone, Doug Bergeron assembled a worldwide management team that grew total revenues from under $300 million in 2002 to nearly $1.9 billion in 2012. International revenues grew 14-fold, from less than $100 million in 2002 to nearly $1.4 billion in 2012, as products were adapted for global markets and new channels were developed, leveraging the growth of the international payments marketplace.

Mr. Bergeron holds a bachelor of arts degree in computer science with special honors from York University in Toronto, Canada, and a master of science degree from the University of Southern California. In June 2013, he was awarded an honorary doctorate of laws (LLD) from York University.

Please click here for a complete list of portfolio company investments made by GTCR since its inception as well as past representative management leaders. Please see Terms of Use for important additional information
Leadership case studies are for Management Leaders only and should not be used for investment purposes. Click to proceed Leadership case study
AssuredPartners: Building on Success with Exceptional Management Leaders
Jim Henderson  |  AssuredPartners

Building on the firm’s success in the insurance brokerage industry—where it built Alliant Resources into a leading U.S. middle-market broker in the early 2000s—GTCR worked proactively over a five-year period to find a proven management team to build another middle-market brokerage firm through consolidation within the highly fragmented industry. In executing its Leaders Strategy™, GTCR first identified and then developed a deep relationship with industry veterans Jim Henderson and Tom Riley. Both Mr. Henderson and Mr. Riley had extensive leadership experience at industry leader Brown & Brown. Throughout this time, the industry landscape remained fragmented with valuations that GTCR believed to be compelling relative to historical averages due to the recent recession.

In early 2011, GTCR partnered with Mr. Henderson and Mr. Riley to form AssuredPartners. To build a premier middle-market insurance brokerage firm, Assured’s strategy was to selectively acquire small- to-middle market property casualty and employee benefits insurance brokerage agencies across the U.S. When integrated into the Assured national platform, the acquired local agencies benefitted from stronger carrier relationships, deeper specialty expertise, expanded product offerings available to customers and enhanced operating efficiencies.

With management’s deep industry relationships and strong operational experience, AssuredPartners established itself as an acquirer of choice within the mid-market insurance brokerage industry. Within four short years, Assured acquired over 100 agencies, both regional platform agencies and smaller, highly accretive tuck-in acquisitions. Throughout this period, GTCR provided management with the necessary capital and support to capitalize on these transformational opportunities and position Assured for long-term growth. By executing its Leaders Strategy™, GTCR was able to create a leading national insurance brokerage firm, resulting in GTCR’s successful exit in late 2015.

Ultimately, it was GTCR’s partnership with an industry-leading management team that positioned the firm to successfully execute its transformational investment thesis and create a market-leading insurance broker.

Please click here for a complete list of portfolio company investments made by GTCR since its inception as well as past representative management leaders. Please see Terms of Use for important additional information
Leadership case studies are for Management Leaders only and should not be used for investment purposes. Click to proceed Leadership case study
Fundtech: Creating Synergies And Leveraging Innovation To Capture A Market
Reuven Ben Menachem  |  Fundtech

GTCR has been a leading investor in the payments industry for more than two decades, and the firm has invested behind secular growth themes in a number of different payment industry sub-segments.

In 2010, the firm was pursuing investment opportunities in payment technology, with a focus on business-to-business and cross-border payments. GTCR determined that this area of the payments universe was underserved by existing technology and services providers, and the growth in business-to-business and cross border payments volumes presented an opportunity to serve an attractive and rapidly growing marketplace.
In the course of the firm’s proactive efforts, GTCR identified and pursued an opportunity to recapitalize Bankserv, a growing SAAS-based provider of payment software and services to small and medium banks, based in Nevada. Initial attempts to consummate a transaction were unsuccessful, but, with further dialogue, GTCR was able to come to an agreement with Bankserv’s Founder and CEO in mid-2011. GTCR expected to invest in Bankserv to foster sustained organic growth and to pursue acquisitions that would add scale and breadth of offerings. As GTCR completed its work to diligence the business and document the transaction, the firm learned that a larger competitor of Bankserv might be willing to entertain acquisition proposals. Fundtech Ltd. was a publicly traded Israeli software business with a strong presence among global banks. It also had substantial overlap with Bankserv’s SAAS-based offerings in the U.S. GTCR believed that the two complementary businesses, if combined in a transformative merger, would have attractive scale and market position attributes, and the combined business would be better positioned to innovate as the leader in this attractive market. GTCR established dialogue with Fundtech’s founder and CEO, Reuven Ben Menachem, about a prospective combination of Fundtech and Bankserv.

The transaction with Fundtech entailed substantial complexity, as GTCR worked against a competing public company that sought to acquire Fundtech. Ultimately, GTCR was able to acquire Fundtech at a substantial premium due to the synergies it could create through the combination with Bankserv. The combined business kept the Fundtech name, with headquarters relocated to New York City. The company operated on six continents with more than 1,500 employees and a strong, global client base.
GTCR’s investment thesis was to transform Fundtech into the undisputed leader in its segment, and GTCR anticipated funding further innovation to extend the company’s competitive lead over other industry players. GTCR underwrote significant re-development of all of the company’s applications and the introduction of new products in demand by customers. GTCR also pursued substantial investment in internal systems and processes to drive greater efficiency, improve quality and enhance the scalability of the business. A number of management changes were made in the first year of ownership. Mr. Ben Menachem assumed the CEO role across the combined business, and President Ed Ho was recruited to add management depth and experience at operating larger enterprises. Strong, experienced managers were hired and promoted into a number of other key roles.

Ultimately, the transformation at Fundtech was successful in enhancing the strategic position of the business. Fundtech’s scale allowed the company to invest a greater amount in development than smaller competitors, and Fundtech enhanced its lead in product capabilities and product line breadth. Sales execution improved with further investments in this area and an improved focus on customer needs. The company experienced an acceleration in revenue growth, to the mid-teens, and profitability grew faster than revenue as the company benefitted from efficiencies and scalable processes and systems.

In early 2015, Fundtech was sold for $1.25 billion to a leading bank technology provider, DH Corporation. The sale price reflected Fundtech’s strong growth and profitability as well as its leadership position in a key, highly strategic segment of the payments industry.

Please click here for a complete list of portfolio company investments made by GTCR since its inception as well as past representative management leaders. Please see Terms of Use for important additional information
Leadership case studies are for Management Leaders only and should not be used for investment purposes. Click to proceed Leadership case study
Premium Credit Limited: Transforming An Underachieving Company By Leveraging Resourceful Domain Expertise and Strong Leadership
Andrew Doman  |  Premium Credit Limited

GTCR’s Leaders Strategy™ acquisition of Premium Credit Limited (PCL) illustrates how the firm partners with experienced executives to proactively identify and execute transformative acquisitions. PCL was an attractive business in the insurance payment finance industry, but had suffered from underinvestment and lack of leadership as an orphan subsidiary under corporate ownership.

GTCR’s relationship with PCL began in 2010 when the firm was pursuing investment opportunities in the specialty finance and payment areas with a leading financial services executive. GTCR and the executive reviewed the opportunity to acquire PCL, then a UK-based subsidiary of Bank of America, but were unable to arrange a satisfactory transaction with the seller. The opportunity seemingly passed and the executive subsequently assumed a senior role at a major global bank. Persistent and undeterred, GTCR continued exploring transaction options with Bank of America. And in early 2012, GTCR’s efforts were realized, as Bank of America and GTCR agreed on terms of a transaction.

Concurrent with GTCR’s efforts to acquire PCL, the firm’s networking activities led to a meeting in 2011 with Andrew Doman, the former CEO of Russell Investments and an experienced financial services executive. Discussions with Mr. Doman highlighted his skills as a leader and his fit with a potential PCL acquisition. Working together, Mr. Doman and GTCR refined the investment thesis for the PCL acquisition and formulated the strategy for funding the acquisition and carving out the business from Bank of America.

GTCR and Mr. Doman worked over a period of many months to secure debt funding for the transaction through an innovative asset-backed funding facility. The required funding structure was complex, with five major European banks participating, despite challenging market conditions in the midst of the European debt crisis. After seven months of efforts, GTCR and Mr. Doman succeeded in finalizing funding arrangements in October 2012, and the transaction closed. GTCR and Mr. Doman, along with incumbent managers of the company, set about executing the carve-out from the seller while initiating planned business improvements.

Specifically, the company enhanced its sales focus and service offerings, enabling PCL to deepen its relationships with existing channel partners and to add several new channel partners. GTCR underwrote significant investments in enhanced technology to improve service delivery and efficiency. GTCR was also able to improve the funding facility, resulting in materially lower funding costs. Ultimately, after the successful carve-out and intense transformation of the business, revenues and profits grew significantly. The company also became a more strategically important participant in UK specialty finance.

As PCL grew and continued to demonstrate strong financial performance, the company became better known and understood in the financial community. GTCR received attractive offers for its ownership position in PCL and sold its interest in PCL in early 2015. The Leaders Strategy™ acquisition and ultimate sale of a complex corporate carve-out illustrates how GTCR’s resourcefulness and commitment to working with exceptional management partners can transform an under-performing business and bring about financial success.

Please click here for a complete list of portfolio company investments made by GTCR since its inception as well as past representative management leaders. Please see Terms of Use for important additional information
Leadership case studies are for Management Leaders only and should not be used for investment purposes. Click to proceed Leadership case study
Syniverse Technologies: Successfully Coupling Vision with Action
G. Edward Evans  |  Syniverse Technologies

In 2000, GTCR took the initiative to expand the firm’s financial technology investment beyond its historic focus in payments and banking. GTCR believed other high-growth industry segments, such as the wireless industry, presented attractive investment opportunities. Through resourceful networking, GTCR was introduced to G. Edward Evans, an accomplished executive in the wireless industry. At the time, Mr. Evans was the President and COO of Dobson Communications, a large wireless company that had grown through a series of substantial acquisitions.

Mr. Evans shared GTCR’s enthusiasm for pursuing a financial technology investment in the wireless industry. He identified several companies that represented potential platforms for investment. The largest of these was Syniverse Technologies (then known as TSI Telecommunication Services), which at the time was owned by GTE. Syniverse was the leading wireless financial technology business, providing a variety of services to wireless carriers that involved the translation, clearing, messaging and processing of data related to wireless voice and data transactions. GTCR approached GTE on a proprietary basis, but initially GTE was unwilling to sell.

In the summer of 2001, Mr. Evans became aware that Verizon, formerly GTE, was considering a sale of the company. With the help of Mr. Evans’ insight and diligence, GTCR saw potential for significant revenue growth and cost savings not previously identified by Verizon management. GTCR believed value could be created through the successful carve-out of the business from Verizon, because Syniverse then would be able to work more closely with its customers who competed with Verizon.

GTCR closed the acquisition of Syniverse in February 2002. While near-term growth was challenged in the aftermath of September 11, GTCR believed the investment could achieve substantial cash-on-cash returns from debt paydown as a result of the company’s strong free cash flow. Furthermore, we believed Syniverse would participate in overall wireless voice services growth and in the proliferation of various data services then in their infancy.

Following closing, GTCR and management worked successfully to carve out the company from Verizon, including transitioning operations out of Verizon data centers as well as transitioning certain Verizon back-office support. New functions were created for the standalone company, and a new CFO was hired to oversee a more robust financial organization. At the same time, Mr. Evans and his team transformed business operations by eliminating costs, reorganizing operations and shifting the company’s business development activities toward higher-growth markets. By late 2003, Syniverse was achieving increased growth from new and existing services.

In late 2004, Syniverse acquired EDS Inter Operator Services (“IOS”). The acquisition strategically transformed Syniverse, in that the IOS business was Syniverse’s largest domestic competitor. The acquisition was also highly accretive, as the company was able to eliminate IOS’s duplicative fixed-cost infrastructure. In the aftermath of this successful acquisition, Syniverse completed an IPO in February 2005. Subsequent to the IPO, Mr. Evans retired as CEO in December 2006, and Tony Holcombe assumed the CEO role. GTCR had recruited Mr. Holcombe to the board based on his successful experiences at National Processing, Ceridien and WebMD.

As a public company in which GTCR still had substantial ownership, Syniverse made another transformational acquisition. In April 2007, the company announced the carve-out acquisition of the European clearing operations of Billing Services Group (“BSG”). BSG was a business Syniverse and GTCR had pursued in the past, when it had been a unit of EDS. We worked closely with Syniverse management on the diligence, negotiation and integration plans for the complicated acquisition. The transaction allowed Syniverse to leverage its scale over a broader geography and added important technology and services to the Syniverse product portfolio. The acquisition also solidified Syniverse’s position competitively with a number of important global clients.

Please click here for a complete list of portfolio company investments made by GTCR since its inception as well as past representative management leaders. Please see Terms of Use for important additional information
Leadership case studies are for Management Leaders only and should not be used for investment purposes. Click to proceed Leadership case study
VeriFone: Seeing Opportunities That Others Miss
Doug Bergeron  |  VeriFone

In 2000, GTCR’s networking activity within financial technology led to a relationship with Doug Bergeron. Mr. Bergeron had previously served as a senior executive of SunGard, a major financial services and technology business in the securities industry, and he was then serving as CEO of Geac Computer, a Canadian software and services company. Following Mr. Bergeron’s departure from Geac, GTCR and Mr. Bergeron looked for a solid company platform upon which to build a partnership, but couldn’t find the right opportunity.

A year later, VeriFone came into the picture. VeriFone had been a very successful company and the market leader in point-of-sale technology for processing credit card and other payment transactions. Hewlett-Packard (“HP”) purchased VeriFone, a public company, in 1997. While HP made significant investments in VeriFone’s product portfolio, HP focused less attention on the company’s sales and marketing capabilities and suffered substantial losses in pursuit of a “dot-com” strategy. Gores Technology Group (“Gores”) purchased VeriFone at a distressed price in mid-2001. Mr. Bergeron played a key role and assumed the role of VeriFone CEO.

GTCR began discussing a recapitalization with Mr. Bergeron shortly after he joined VeriFone. GTCR considered itself to be an attractive investor to Mr. Bergeron based on our existing relationship with him and our experience and credibility in the payments arena. Mr. Bergeron desired a partner that could add strategic value through knowledge and relationships. Based on our sector expertise, we believed VeriFone’s strong market position would enable it to rebound and drive substantial profitability. We also believed that cost cuts and spreading of fixed costs through organic growth could double margins over time. As well, through our research, we believed the cyclical need for better software functionality, greater processing capabilities and improved connectivity created the potential for substantial revenue growth.

In the spring of 2002, GTCR negotiated a recapitalization with Gores. After the acquisition, GTCR moved quickly with Mr. Bergeron to operationally transform the company. Mr. Bergeron eliminated substantial costs and made significant improvements in the company’s supply chain operations. Mr. Bergeron also introduced new products that achieved strong market reception. Concurrently, GTCR and Mr. Bergeron worked to improve the financial back office, providing for better information and allowing the company to pursue other capital market transactions. We believed this enhanced growth and higher-quality financial reporting made the company an attractive candidate for the public market.

VeriFone went public in May 2005.

Please click here for a complete list of portfolio company investments made by GTCR since its inception as well as past representative management leaders. Please see Terms of Use for important additional information
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