Target Information

OutSolve, LLC, based in Metairie, Louisiana, specializes in compliance solutions that help clients navigate federal contracting standards and other regulations aimed at fostering non-discriminatory workplace policies. The company serves over 2,000 customers across diverse industries throughout the United States, establishing itself as a key player in the compliance sector.

By providing tailored services that align with the unique needs of its clients, OutSolve has built a strong reputation for effectiveness and reliability in promoting workplace equality and compliance with federal requirements.

Industry Overview

The compliance solutions industry in the United States is critical for organizations seeking to meet federal standards, particularly in areas related to workplace discrimination and contracting. It operates within a framework of increasing regulation and scrutiny, compelling businesses to prioritize compliance as an essential aspect of their operational strategy.

Within Louisiana, there is a growing awareness of the importance of compliance and non-discrimination policies, driven by continued developments at both federal and state levels. As a result, companies like OutSolve are positioned advantageously to address the rising demand for expert compliance guidance.

The national and state-level emphasis on equity in the workplace reflects broader societal trends, translating into an expanding market for compliance solutions. Organizations increasingly recognize the need for expert assistance to navigate these complex regulations, which serves to enhance the relevance and demand for services provided by companies like OutSolve.

As businesses across various sectors strive to align their operations with compliance standards while simultaneously fostering inclusive environments, firms offering specialized consulting and compliance services are likely to experience substantial growth in the coming years.

Rationale Behind the Deal

The acquisition of OutSolve by The Riverside Company is motivated by the potential for significant growth in the compliance solutions market. Riverside's investment strategy emphasizes partnerships with companies that show promise for expansion through operational improvements and complementary acquisitions.

By integrating OutSolve's expertise and client base, Riverside aims to enhance its ability to deliver comprehensive compliance solutions, thereby expanding its service offerings and driving increased revenue potential for the combined entity.

Investor Information

New Canaan Funding (NCF) is a mezzanine financing firm with headquarters in Naples, Florida, and operational offices in New Canaan, Connecticut, and Wheaton, Illinois. Active since 1995, NCF specializes in the middle market private sponsor community, focusing on acquisitions, recapitalizations, and growth financing.

With a history of 600 investments, including the current acquisition project as part of its seventh fund, NCF has established itself as a reliable partner for private equity firms. The investment in OutSolve marks NCF VII SBIC's ninth investment from their current fund and reflects NCF's commitment to supporting impactful growth initiatives in partnership with established equity partners like Riverside.

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The investment in OutSolve by Riverside, supported by NCF's financing, is positioned as a sound strategic move within a growing market. The ongoing demand for compliance solutions in the federal contracting landscape presents a unique opportunity for both OutSolve and its investors.

With Riverside's track record of successful operational improvements and OutSolve's foundation of an extensive customer base, the deal indicates a strong potential for boosting revenue through enhanced services and potential market expansion.

Furthermore, NCF's involvement underscores the synergy between mezzanine financing and equity investment, fostering a partnership that can leverage growth strategies effectively. Given Riverside’s expertise and OutSolve’s operational capability, this venture could yield promising financial returns.

In conclusion, the partnership represents a calculated investment strategy aimed at capitalizing on the increasing emphasis on compliance across various industries, making it an intriguing opportunity for stakeholders involved.

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