Bow River Capital Completes Exit from AbsenceSoft Investment
Bow River Capital Completes Exit from AbsenceSoft Investment
Bow River Capital's Software Growth Equity Team has announced the successful completion of its full-sale transaction of AbsenceSoft to Luminate Capital, a prominent growth buyout firm focused on enterprise SaaS companies. AbsenceSoft, recognized as a global leader in Leave and Accommodation Lifecycle Management, now supports over five million lives via its innovative platform, serving more than 300 of the world's largest corporations.
Strategic Investment and Growth Trajectory
The SGE team at Bow River Capital captured a majority stake in AbsenceSoft back in mid-2019. Since then, the company experienced remarkable growth, achieving a staggering 400% increase and subsequently recapitalizing 28 months later. This successful journey saw Bow River partners reinvest alongside Norwest Venture Partners to push for further growth.
Leadership and Innovation
In this transformative phase, the leadership of AbsenceSoft shifted, welcoming Mark Schiff as CEO and equipping the company with key leaders essential for managing and promoting global expansion. The team prioritized the acceleration of growth by onboarding global clients, enhancing operational capabilities, and launching compliance-driven product innovations to the market, thus elevating the company's service offerings.
Acknowledgment from Company Leaders
John Raeder, who serves as Vice Chairman and Head of Software Investments at Bow River Capital, reflected on the partnership: "We found AbsenceSoft right in our backyard and built a constructive relationship with founder Seth Turner. Understanding their previous challenges, we recognized they needed seasoned expertise to reach the next growth stage. Over our five-year engagement, we were instrumental in scaling the company into a formidable competitor in the absence management sector, achieving a 12.5-fold revenue increase while broadening its international presence. Our exit from SGE Fund I is a testament to our successful value creation strategies and strong partnerships.”
Growth Journey and Employee Focus
Seth Turner, the founder of AbsenceSoft, expressed pride in the transformative growth the company has achieved: "Our trajectory has been remarkable thanks to our team's dedication to employee-centric values, distinguishing AbsenceSoft from competitors. This transition was significantly supported by the guidance of John Raeder and the Bow River team since mid-2019, as well as the expert backing from Norwest Venture Partners."
Future Vision with Luminate Capital
Mark Schiff expanded on the innovative direction of AbsenceSoft, stating, "Our market-leading platform signifies our commitment to tackling the complexities of leave and accommodation lifecycle management while aligning with evolving legislative requirements globally. We’re excited about this new chapter with Luminate Capital and the potential it brings to strengthening our market position further.”
Investment and Legal Advisors
Raymond James provided essential investment banking advice throughout the AbsenceSoft transaction, while Goodwin Proctor, LLP offered legal counsel to the company, facilitating a smooth transition during this significant sale.
About Bow River Capital
Founded in 2003, Bow River Capital specializes in private alternative asset management and targets lower and middle markets across various asset classes, including software growth equity. Their subsidiary, Bow River Advisers, LLC, operates the Bow River Capital Evergreen Fund (EVERX), aimed at delivering institutional-quality private market access for a wide range of investors. With a strong team, Bow River Capital has invested in diverse sectors, effectively deploying capital across different asset classes.
About AbsenceSoft
AbsenceSoft stands out in the SaaS market as a leading provider of leave and accommodations management solutions. Their platform is tailored to manage over 190 statutory policies, including FMLA, ADA, and PWFA, streamlining processes for various organizations. Built by experienced professionals, AbsenceSoft has developed a reputation for excellent customer service and deep engagement with its client community.
Frequently Asked Questions
What led to Bow River Capital's sale of AbsenceSoft?
Bow River Capital's sale was driven by AbsenceSoft's outstanding growth trajectory and strategic alignment with Luminate Capital's investment focus.
How did AbsenceSoft evolve under Bow River Capital's management?
During their partnership, AbsenceSoft expanded its revenue significantly while enhancing its global market presence and operational capabilities.
Who were the key figures in AbsenceSoft's leadership during its growth?
Mark Schiff, as CEO, and founder Seth Turner played pivotal roles in steering the company during its transformation.
What services does AbsenceSoft provide?
AbsenceSoft specializes in leave and accommodations management, focusing on compliance with statutory policies and improving employer-employee interactions.
What does the future hold for AbsenceSoft now?
With Luminate Capital's backing, AbsenceSoft aims to continue its innovative growth trajectory and enhance its market-leading position.
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