Francisco Partners is said to seek buyer for PayLease

Francisco Partners has put PayLease up for sale, more than two years after buying the company, according to four sources.

The San Francisco private equity firm tapped Raymond James to find a buyer, sources said. PayLease is expected to fetch $300 million to $400 million, one source said.

The auction is expected to attract middle-market PE firms like Aquiline Capital Partners, GTCR, Lightyear Capital and Genstar Capital.

Ty Kalklosch
and Yann Phung co-founded PayLease in 2003 over a round of beers as they were discussing more convenient ways to pay the rent, the website says. PayLease, with offices in San Diego and Chicago, is an online-payment provider for property management and homeowners associations. The company employs 222 people.

Mainsail Partners invested in PayLease in 2010. The growth equity firm put PayLease up for sale in 2014, seeking bids of roughly $120 million, Buyouts reported. Raymond James advised on the auction.

That sale process led Francisco to buy a majority of the company in June 2014. Mainsail Partners retained a stake.

The PayLease sale is the latest for Francisco Partners. In April, the PE firm agreed to sell Paymetric Inc to Vanity Inc for about $525 million, Buyouts reported. Francisco stands to make 5x its money with the Paymetric sale, the story said.

Francisco Partners invests in technology and technology-enabled businesses. The firm’s last flagship fund, Francisco Partners IV LP, collected $2.88 billion in 2015. Francisco’s prior pool collected $2 billion in 2011.

Francisco Partners, Mainsail, Raymond James and PayLease could not immediately be reached for comment.

Action Item: Contact Ty Kalklosch, PayLease president, at +1 866-729-5327

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