Written by David French
(Reuters) – Bain Capital said on Thursday it is taking a $250 million minority stake in business services company Sikich, which plans to use the investment to fund its expansion plans.
The private equity firm is the first outside investor in Chicago-based Sikich, which was founded in 1982. The $250 million was structured as preferred stock, the companies told Reuters.
Sikich CEO Christopher Geyer said the company had reached an “inflection point” in its growth, and Bain's involvement in the business would help Sikich take the next steps in its development.
The company has doubled in size in the past five years, according to a joint statement, and plans further expansion through new acquisitions and strategic partnerships. Bain did not disclose Sikich's value after the investment.
Sikich currently has over 2,000 employees and operates throughout the United States and internationally. Its services include auditing, employee program management and succession planning.
“Sikich’s differentiated business model has enabled the company to gain share in a fragmented market,” said Christian Getiano, Partner at Bain Capital Special Situations.
While large leveraged buyout volumes have declined in the past two years as a spike in financing costs made access to debt financing more difficult, the volume of so-called growth equity investments by private equity firms has remained at healthy levels, according to a report released in April. From data provider PitchBook.
