Kayne Partners invests in Source Intelligence

Carlsbad, California-based Source Intelligence, a provider of supply chain compliance, information management and SaaS platforms, has raised $17.5 million in funding. The investor was Kayne Partners.


LOS ANGELES–(BUSINESS WIRE)–Kayne Partners announced today that it has invested $17.5 million in Source Intelligence, an award-winning provider of supply chain compliance, information management, and SaaS platforms. Kayne Partners is the growth private equity group of Kayne Anderson Capital Advisors, L.P., an alternative investment firm managing over $22 billion in assets.

Headquartered in Carlsbad, California, Source Intelligence operates like the “LinkedIn” of supply chains because it has developed both a cloud-based information and analytics platform that provides users at all levels with visibility into product supply chains and material sources, as well as one of the world’s largest active and constantly updated supplier database. Through highly detailed reports provided by Source Intelligence, the world’s leading brands are ensuring compliance with complex regulations, improving their social responsibility reporting, minimizing operational and brand risk, and improving efficiency. Kayne’s minority investment will assist Source Intelligence with its strategic expansion plans in the U.S., Europe, Asia and Africa.

“We ran an extensive process to select a partner who could bring strategic as well as financial capital to the table,” said Jess Kraus, co-founder and CEO, Source Intelligence. “It quickly became apparent that Kayne Partners shared our vision that Source Intelligence will continue to empower global brands and their suppliers to navigate the complex web of interrelationships up and down their vast supplier chains to achieve their transparency and performance goals. As Source Intelligence’s incredible growth rate increases now at approximately 1,000 platform users per day in the coming quarters, the support of Kayne Partners will help accelerate the product roadmap and accomplish our hiring plans.”

“As companies face a new set of complex supply chain compliance challenges, Source Intelligence has built a comprehensive solution that effectively and efficiently addresses these pain points for its customers. With our investment, the Company will be able to further accelerate growth through increased sales efforts, geographic expansion and product development,” said Scottie Wardell, Director, Kayne Partners. According to SEC Dodd-Frank S1502 filings, the company’s clients include megabrands such as Mattel Inc., Aerojet Rocketdyne Holdings, Inc., and Costco Wholesale Corporation.

Source Intelligence is led by a seasoned group of experts in sustainability, environmental compliance. In addition to securing its latest round of financing, CEO Jess Kraus was recently awarded “CEO of the Year” by CIO Review magazine, which also named SI among the top supply chain solution providers for 2015, and Source Intelligence earned the 2015 GRC Innovation Award by analyst firm GRC 20/20.

About Source Intelligence
Source Intelligence (SI) is a global network of businesses linked together to expedite the exchange and validation of compliance information. SI’s cloud-based SaaS platform helps customers make informed decisions about business partners to offer products that meet legal, ethical, and environmental standards. The company’s information and analytics platform provides customers with visibility into supply chains in order to comply with the law, minimize operational and brand risk, and improve efficiency. Founded in 2009 by career experts in environmental solutions and analytics, Source Intelligence has headquarters in Carlsbad, California and operations worldwide. It received the 2015 GRC Innovation Award, and Jess Kraus was named CEO of the Year by CIO Review magazine.

About Kayne Partners
Kayne Partners is a leading provider of capital and connections to rapidly growing companies in North America. Since its inception more than a decade ago, it has invested over $600 million in platform investments and add-on acquisitions. Kayne Partners seeks to partner with driven entrepreneurs as a non-control minority investor and provide transformative capital to these high growth companies. Kayne Partners is the growth private equity group of Kayne Anderson Capital Advisors, L.P.

About Kayne Anderson Capital Advisors, L.P.
Kayne Anderson, founded in 1984, is a leading independent alternative investment management firm focused on niche investing in energy and energy infrastructure, specialized real estate, middle market credit, and growth private equity. Kayne Anderson’s investment philosophy is to pursue niches, with an emphasis on cash flow, where its knowledge and sourcing advantages enable it to deliver above average, risk-adjusted investment returns. Kayne Anderson manages over $22 billion in assets, as of November 30, 2015, for institutional investors, family offices, high net worth and retail clients and employs 300 professionals in eight offices across the United States. The firm is headquartered in Los Angeles with offices in Houston, New York City, Chicago, Denver, Dallas, Atlanta and Boca Raton.