FFL Partners has completed a $100 million growth investment in Velocity Global, supporting its concurrently-announced acquisition of iWorkGlobal. The pair of companies, which will operate under the Velocity brand, create the largest U.S. domestic and global provider of Employer of Record services.
SAN FRANCISCO – APRIL 6, 2021 – FFL Partners (“FFL”), a private equity firm focused on growth investments in middle market companies, today announced that it has completed a $100 million growth investment in Velocity Global, LLC (“the Company”), the leading provider of global expansion solutions. The investment supports the Company’s concurrently-announced acquisition of iWorkGlobal, creating the largest U.S. domestic and global Employer of Record (“EoR”) accelerating the future of remote work for companies around the world. Additional terms of the private transaction were not disclosed.
Headquartered in Denver, Velocity Global is a global Employer of Record founded in 2014, which provides compliance, payroll and immigration services to a wide range of companies in 185 countries. As a result of acquiring iWorkGlobal, Velocity Global becomes the world’s largest, single platform provider of EoR services domestically and worldwide. 300 professionals provide personalized service to over 700 brands and more than 4,000 supported employees worldwide. The combined company will operate under the Velocity Global brand.
“Velocity Global has an excellent reputation and continues to enable its customers to effectively and seamlessly utilize its EoR service to reduce the costs and complex regulatory burdens associated with managing employee HR and benefits internally,” said Cas Schneller, Managing Partner at FFL Partners. “We look forward to supporting CEO Ben Wright and his management team as they continue to streamline the process of HR management and remote workforce capabilities, while pursuing complementary acquisitions to build additional scale and better serve customers in North America and globally.”
“FFL Partners shares our vision and priorities as we expand our value-added EoR services in the U.S. where we see increased demand for our personalized, compliant, and People-First approach in the post-pandemic economic environment,” said Ben Wright, Founder and CEO of Velocity Global. “FFL’s support strengthens our best-in-class technology and accelerates our continued growth, both organic and through potential acquisitions.”
Velocity Global will also use FFL’s investment to finance technology development, expand its EoR services globally and in the U.S., and introduce Independent Contractor Compliance to assess a workforce and Agent of Record (“AoR”) to streamline payments to contractors globally.
“FFL sourced its investment in Velocity Global through our thematic SEED (“Sub-Sector Exploration and Expertise Development”) process that involves conducting deep analysis of an industry’s secular trends prior to making an investment,” said Jonathon Bunt, a Director at FFL Partners. “This transaction represents our fourth investment over the last five years in HR services, where we have unique and differentiated expertise.”
FFL has a proven track record of investing in and building HR services businesses including Crisis Prevention Institute, a Milwaukee-based organization that specializes in training to manage disruptive and assaultive behaviors; ALKU, an Andover, Mass.-based high-end specialized staffing firm; and, ProService Hawaii, a Honolulu-based provider of payroll, administrative, compliance and risk management services to small and medium-sized businesses.
About FFL Partners
Founded in 1997, FFL Partners is a San Francisco-based private equity firm with over $4.5 billion under management. FFL pursues thematic investments in business services and healthcare services partnering with exceptional management teams where the firm’s high engagement operating model and extensive network can help accelerate growth and unlock value. Growing our businesses has provided over 75% of the value created by FFL for its investors. For additional information please visit www.fflpartners.com.
About Velocity Global
Velocity Global accelerates the future of work beyond borders. Its platform enables businesses to employ remote teams and expand internationally through global expertise, best-in-breed technology, and scale. More than 700 brands rely on its Employer of Record model and infrastructure in 185 countries and all 50 United States to compliantly employ thousands of supported employees, access global talent, and grow revenue. Named a “Leader” in Global Employer of Record services by prominent analyst firm NelsonHall, Velocity Global is a strategic partner to its clients through additional comprehensive services including Immigration, Independent Contractor Compliance to assess a workforce, and Agent of Record (AoR) to streamline payments to contractors globally. Founded in 2014, the company is headquartered in Denver, Colorado, with regional headquarters in Amsterdam, Bogotá, and Singapore, with local employees in 16 countries.