A Hunt Scanlon Top 10 search firm has raised a significant financing round to bolster growth initiatives and enhance its ability to deliver innovative talent solutions to clients worldwide. Scott A. Scanlon, CEO of Hunt Scanlon Ventures, takes a closer look.
ZRG, a global talent advisory firm, has secured $120 million in debt financing from Main Street Capital Corporation and its affiliates.
“This latest round of financing will play a crucial role in supporting ZRG’s ongoing growth strategy,” said Scott A. Scanlon, CEO of Hunt Scanlon Ventures. He said the company plans to leverage the capital to continue acquiring high-quality businesses that complement its existing capabilities and continue to hire top talent to drive further growth.
“Given the difficult environment we are in, this is an impressive achievement and a testament to the strength of ZRG’s platform,” said Mr. Scanlon.
“It is a great time to acquire niche talent advisory and management businesses and build out our capabilities across executive search, interim, RPO, and consulting,” said ZRG CEO Larry Hartmann. “This additional financing from Main Street Capital, combined with our recent equity raise with a consortium of investors, positions us strongly to achieve our strategic objectives.”
Financial Flexibility
The $120 million debt financing follows closely on the heels of ZRG’s recent equity raise managed by RFE Investment Partners, ZRG’s primary financial sponsor, further solidifying the firm’s financial foundation and capacity for expansion.
“It is a great time to acquire niche talent advisory and management businesses and build out our capabilities across executive search, interim, RPO, and consulting.”
“We are excited to partner with Main Street Capital, as this strategic debt refinancing will provide ZRG with greater financial flexibility and a strong balance sheet, while serving as the catalyst to execute on the company’s long-term growth plan,” said Ron Ahuja, principal of RFE Investment Partners.
“We are impressed with ZRG’s data driven and tech-enabled approach to candidate placement and are excited to support the business and RFE as they execute on their M&A strategy,” said John Watson, director at Main Street Capital.
Related: Inside The Deal: CEO Larry Hartmann Opens Up On ZRG’s Latest Strategic Acquisition
Ambitious Growth Plans
According to Mr. Scanlon, ZRG is committed to delivering top-tier talent solutions and maintaining its position as a leader in the talent advisory industry. “With this new infusion of capital, the company is well-equipped to pursue its ambitious growth plans and continue providing exceptional value to its clients,” he said.
“With this new infusion of capital, the company is well-equipped to pursue its ambitious growth plans and continue providing exceptional value to its clients.”
ZRG was advised on the debt financing by Capstone Partners. Brad Stewart, managing director in Capstone’s Debt Advisory Group, said that “ZRG and RFE are both highly relationship-oriented in their approach and prioritized in finding the right relationship fit with its new lender; we were very pleased to have earned their trust to advise them on this important financing and next chapter in their growth story.”
With over 30 offices on five continents, ZRG provides people solutions for the complex talent issues that its corporate and private equity clients face on a day-to-day basis.
ZRG’s core offerings include executive search focusing on senior global leadership as well as a growing suite of on-demand (interim) talent offerings to help clients fill open roles and address project-based work with specialized talent. The firm’s consulting and advisory solutions focus on key issues like “culture fit,” strategic alignment, coaching, and sales optimization.
Three years ago ZRG acquired Walking the Talk, a leading consulting and advisory firm focused on culture transformation. Earlier that year it acquired leading sports recruiters Turnkey Search. Last year, ZRG acquired The Registry, an interim solutions platform focused on higher education and considered the gold-standard in its sector. Hunt Scanlon Ventures facilitated all three transactions and served as a strategic advisor to ZRG.
Article By
Scott A. Scanlon
Scott A. Scanlon is Co-CEO of Hunt Scanlon Ventures, which was formed to assist human capital firms realize their full investment potential. Scott has spent the last three years building the firm’s M&A advisory unit, which now offers a full range of critical solutions to guide founders and their management teams to successful exits. Connect with Scott.
