Direct Connect Holdings LLC has closed its recap led by Beekman Investment Partners II LP. No financial terms were disclosed. Goldman Sachs provided most of the debt financing. Based in Northern Virginia, Direct Connect provides credit and debit card payment processing solutions.
NEW YORK, January 21, 2015 — Beekman Investment Partners II, LP (“Beekman”) today announced that it has led the recapitalization of Direct Connect Holdings, LLC (“Direct Connect” or the “Company”), a leading provider of credit and debit card payment processing services. Beekman partnered with Direct Connect’s President and Chief Executive Officer, Matt Clyne, who will continue to lead the Company and maintain a significant ownership interest going forward.
Matt Clyne, who has led Direct Connect since 2009, commented, “I am excited to have found a growth oriented partner with values that are consistent with our own and a commitment to accelerating Direct Connect’s growth to meet the potential to which the Company aspires. The Beekman team’s experience in building lower middle-market companies and more specifically their experience supporting its portfolio companies’ acquisition strategies, with both capital and expertise, made them the best fit to maximize our growth potential.”
Direct Connect provides check and payment card acceptance and processing solutions across a range of formats, including credit, debit, gift, stored value and electronic benefit transfer. The comprehensive merchant service offering includes mobile and website acceptance solutions, a virtual terminal for mail and telephone order processing, secure and compliant point-of-sale equipment solutions, cash advance funding program, terminal sales / leases and deployment, full customer, tech and merchant support, chargeback resolution and Payment Card Industry (“PCI”) security compliance.
John G. Troiano, Beekman’s Managing Partner stated “Our interest in merchant service providers began a year ago and our search focused on businesses that were capitalizing on several exciting and value-added trends within the payment industry. Matt Clyne has surrounded himself with experienced management team members, many of whom have worked together for several years prior to joining Direct Connect, and have executed on the high-value growth strategies across the industry. We believe the team is well positioned to not only accelerate growth, but also to support merchants and sales representatives in new and innovative ways.”
Direct Connect’s debt financing was led by Goldman Sachs Specialty Lending Group, L.P., who has partnered with Beekman in financing other portfolio companies. Direct Connect represents the final investment in Beekman’s second fund. Beekman recently closed its third lower middle-market fund at its hard cap of $230 million.
About The Beekman Group
Founded in 2004, The Beekman Group is a leading private equity firm based in New York City, dedicated to bringing financial and operational resources to lower middle-market companies.
Beekman’s team consists of experienced private equity professionals, as well as a select group of operating executives who are leading executives in Beekman’s targeted industry segments. This approach to investing is the cornerstone of Beekman’s investment strategy — creating value through accelerating growth in partnership with small and middle-market management teams.
About Direct Connect
Direct Connect is headquartered in the Dulles Corridor of Northern Virginia and provides customized electronic payment processing, equipment, merchant services and support to businesses across the United States and Canada. Direct Connect delivers customized payment solutions for all types of businesses including brick-n-mortar retail stores, direct mail and phone order operations, B2B, government contractors, service industries, and software developers; among others. For more information visit www.directconnectps.com.