Babson Capital Management has invested $20 million of mezzanine debt, plus $2 million in equity financing, to support The Riverside Company’s investment in existing portfolio company ELT Inc. The financing is aimed at supporting San Francisco-based ELT’s merger with EthicsPoint Inc. and Global Compliance Services Inc.
Babson Capital Management LLC (Babson Capital), an investment management firm based in Springfield and Boston, Mass., and Charlotte, N.C., today announced it provided $20 million of mezzanine debt and $2 million of equity to support The Riverside Company’s investment in the growth of its existing portfolio company, ELT Inc.
The financing from Riverside and Babson Capital helped fund San Francisco-based ELT’s merger with EthicsPoint Inc. and Global Compliance Services Inc. The merger creates a leader in the governance, risk and compliance industry offering a deeply experienced and knowledgeable team of experts and a comprehensive set of technology and content solutions to a client base of nearly 6,500 organizations worldwide.
“With our long and successful track record of working together to meet the financing needs of middle-market companies, Babson Capital was the ideal partner for us in working through a complex transaction,” said Loren Schlachet, Managing Director with The Riverside Company. “We are excited about the prospects for ELT with its newly expanded skills and resources, and we look forward to working with Mark Reed and his team to help the combined company achieve its growth potential.”
“As an institutional asset manager with clients around the world and operations on four continents, Babson Capital is keenly aware of the increasingly complex and global nature of enterprise risk and compliance issues and the growing market for the kind of sophisticated solutions that ELT, EthicsPoint and Global Compliance Services offer,” said Mike Klofas, Managing Director and head of the Middle Market Finance Group for Babson Capital. “We are very pleased to join with our longtime partners at The Riverside Co. to support a leader in this burgeoning industry and look forward to supporting them on additional investments in the near future.”
About The Riverside Company
The Riverside Company is a global private equity firm focused on acquiring growing businesses valued at up to $200 million (€200 million in Europe). Since its founding in 1988, Riverside has invested in more than 275 transactions. The firm’s international portfolio includes more than 75 companies, and it has $3.2 billion/€2.5 billion in assets under management.
About Babson Capital Management LLC
Babson Capital Management LLC and its subsidiaries serve institutional investors around the globe and have $142.8 billion in assets under management as of March 31, 2012. Through proprietary research and analysis and a focus on investment fundamentals, we develop products and strategies that leverage our broad array of expertise in fixed income, equities, alternative, structured products, debt financing for corporations and debt and equity financing for commercial real estate. Based in Boston and Springfield, Mass., and Charlotte, N.C., with offices in New York City and Los Angeles, the firm’s subsidiaries include Babson Capital Europe Limited in London, Babson Capital Australia Pty Ltd in Sydney, Cornerstone Real Estate Advisers LLC in Hartford, Conn., and Wood Creek Capital Management, LLC in New Haven, Conn.