Aurora Capital agrees to buy Stone Point’s Grace Hill

Stone Point, taking a majority interest in the PropTech business in March 2018, kicked off a sale process earlhy tis month via William Blair.

Aurora Capital Partners has agreed to acquire Grace Hill, a talent management technology provider for the real estate industry, from Stone Point Capital, sources familiar with the situation told PE Hub.

The deal was signed around a week ago and is pending closure, the sources said.

In early April, PE Hub reported that Stone Point hired William Blair as sell-side financial adviser, but an auction for the business had yet to kick off. That suggests the process spanned just a few weeks, based upon the previously reported timeline.

Grace Hill, based in GreenvilleSouth Carolinaprovides technology-enabled talent performance platform that helps owners and operators of real estate properties increase property performance, reduce operating risk and grow top talent. 

The company generates between $15 million and $20 million in EBITDA, the sources told PE Hub previously. In 2020, the company produced $15 million and around $47 million in EBITDA and revenue, respectively, they said.

Some people familiar with general software and PropTech (real estate technology) valuations estimated that Aurora’s acquisition of Grace Hill is valued between $300 million and $400 million, however PE Hub was unable to confirm its value.

Stone Point, taking majority interest in March 2018, has fueled growth at Grace Hill through multiple add-ons. 

In October 2018, the company acquired The Strategic Solution, a multifamily industry provider of policy solutions. In January of this year, Grace Hill acquired Kingsley Associatesa provider of research and benchmarking tools for the property management industry.  

Aurora Capital, based in Los Angeles, invests in industrial and business services as well as software and tech-enabled services.

The firm does not have an extensive technology portfolio at this time, but companies like Grace Hill, operating at the intersection of technology and businesses services, are generally well regarded, one of the sources said.

Aurora hasn’t been particularly active on the software front but made a few notable investments and exits over the past year.

In September 2020, Aurora sold insurtech provider Zywave to Clearlake Capital for $800 million to $900 million after nearly a seven-year hold, PE Hub reported at that time.

In June 2020, the firm acquired FMG Suite, a marketing automation software provider for financial services professionals, from K1 Investment Management.

Aurora Capital declined to comment. William Blair, Stone Point and Grace Hill did not return PE Hub‘s requests for comment.