Compass Investment Partners Fund Acquires CoAdvantage Corporation

Compass Investment Partners Fund has acquired CoAdvantage Corporation. CoAdvantage is a professional employer organization and is based in Orlando, FL with additional offices across Florida and Texas.


Compass Investment Partners Fund, L.P. (“CIP Capital”) has completed the acquisition of CoAdvantage Corporation (“CoAdvantage” or the “Company”). CoAdvantage is a leading Professional Employer Organization (PEO) that offers small and mid-sized businesses a comprehensive package of outsourced human resources solutions enabling them to reduce their administrative burden, ensure compliance with employer regulations, and gain access to affordable employee benefits. The Company integrates payroll and tax processing, employee benefit plan administration, risk management, government compliance and other human resources services into a single vendor solution that is extremely efficient and effective. CoAdvantage is based in Orlando, FL and maintains additional offices across Florida and Texas.
“The CoAdvantage team is extremely excited to partner with CIP Capital for the next stage of the Company’s growth,” said Mike Maseda, CEO of CoAdvantage. “We view CIP Capital as a value-added partner who will provide strategic guidance, resources and capital to accelerate our growth into new markets in addition to increasing our investment in new value-added services and technology for our client base. 2013 will be an exciting year for our clients and employees.” The Company also announced plans to enter the Palm Beach, Austin and San Antonio markets in early 2013.
“CoAdvantage’s business model represents a core focus of CIP Capital’s targeted middle- market investment strategy in the Business Information and Outsourced Services market,” said Scott Marden, Managing Partner of CIP Capital. “We believe adoption of the PEO model by small businesses will continue to increase based on the ever changing compliance and regulatory environment.” CoAdvantage will be the third platform investment for CIP Capital over the past year and the first within its Human Resources Outsourcing (HRO) sub-sector strategy. Justin Lipton, Managing Director of CIP Capital, added: “We look forward to working with Mike and the entire management team to continue to scale the CoAdvantage platform by entering several new markets over the next few years. CoAdvantage will continue to build industry-leading solutions to assist small businesses in addressing their ongoing HR, insurance and employee benefits needs.”
Madison Capital Funding LLC, TIAA and Fifth Street Finance Corp. provided debt financing for the transaction. Sidley Austin LLP served as legal counsel to CIP Capital.
About CoAdvantage:
CoAdvantage, a leader in human resource solutions, provides Professional Employer Organization (PEO) services for small and medium-sized employers nationwide. The company has service centers in Orlando, Tampa, Houston and Dallas.

About CIP Capital:
CIP Capital is a New York based private equity firm focused on investing in growth-oriented, middle-market companies across the Business Information and Outsourced Services markets in North America. The fund seeks to invest in proven, profitable businesses that provide their customer bases with critical information, proprietary content and value-added outsourced services. Targeted sectors for investment include: B2B information management, marketing services, Business Process Outsourcing, and knowledge services. For more information please visit:
For Information Please Contact:
Justin Lipton Managing Director, CIP Capital (212) 257-5002
Bobby Kelly Managing Director, CIP Capital (212) 257-5004