Target Information

Brentwood Associates has successfully acquired Parchment Inc., a digital credential service launched in 2003. Parchment facilitates the processes of requesting, verifying, and sharing educational credentials through a simple and secure platform that caters to learners, academic institutions, and employers alike. With its expansive network and innovative services, Parchment has become a trusted name in the credentialing space.

Following the acquisition, Parchment will merge with Credentials Solutions, LLC, a leading provider of higher education transcript automation services that Brentwood acquired in 2018. This merger will combine the strengths of both organizations, unifying them under the Parchment brand and enhancing the services offered to a shared network of over 13,000 educational institutions and millions of users.

Industry Overview in the United States

The digital credentialing industry in the United States has experienced rapid growth and transformation in recent years. As the demand for verifiable qualifications increases among employers and educational institutions, the market for digital credential services has expanded significantly. The adoption of advanced technology and data management systems within education is reshaping how credentials are issued and managed, offering opportunities for increased efficiency and security.

In addition, the COVID-19 pandemic has accelerated the need for remote verification processes, pushing institutions to seek automated solutions that can streamline administrative tasks. This shift highlights the importance of digital solutions in the education sector and the ongoing transformation of student credential management.

Amidst these changes, companies providing credential solutions are expected to lead the charge in developing innovative services that cater to evolving customer needs. The competition within this sector is growing, as institutions seek partners that can enhance their operational capabilities while focusing on user experience.

Rationale Behind the Deal

The merger of Parchment and Credentials Solutions presents a strategic opportunity to create a comprehensive platform that serves a broad network of educational institutions. By integrating their services, the combined organization aims to streamline the issuance and management of transcripts, diplomas, certificates, and badges while enhancing customer support systems to prioritize the learner experience.

Brentwood Associates recognizes the potential for growth in the credentialing market, and this acquisition forms part of a broader strategy to innovate and expand services in this sector. The combination of resources and expertise between Parchment and Credentials Solutions is expected to accelerate innovation and improve service offerings for their customers.

Information About the Investor

Brentwood Associates is a well-established middle-market private equity investment firm with over 30 years of experience investing in growth-oriented companies across various sectors, including education. The firm has a track record of supporting businesses through strategic investments that help them achieve sustainable growth and enhance their market position.

Brentwood's expertise in the education sector and commitment to nurturing innovative solutions position it as a valuable partner for Parchment. With extensive experience in building brands and executing growth strategies, Brentwood is well-equipped to support the combined organization in its expansion efforts.

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The merger between Parchment and Credentials Solutions presents a strong investment opportunity within the evolving digital credentialing sector. The consolidation of their capabilities under a unified brand is poised to create a formidable player in the market, enhancing service offerings and improving operational efficiencies.

From an investment perspective, this deal aligns with Brentwood's strategy to leverage its expertise to catalyze growth in the education technology landscape. The combined entity is uniquely positioned to address the increasing demand for automated credentialing solutions, which is likely to attract further interest from educational institutions seeking efficiency and trust in their credentialing processes.

Moreover, the experience and leadership of Matthew Pittinsky, alongside Brentwood’s support, stands to further strengthen the organization’s market presence. Their shared vision for client-focused service delivery is critical to capturing the expanding opportunities in this sector.

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