L Squared recaps Heggerty

L Squared Capital Partners is leading a recapitalization of Heggerty, an early childhood literacy solutions provider.

L Squared Capital Partners is leading a recapitalization of Heggerty, an early childhood literacy solutions provider. No financial terms were disclosed.

PRESS RELEASE

NEWPORT BEACH, Calif.–(BUSINESS WIRE)–L Squared Capital Partners (“L Squared”) announced today that it is leading the recapitalization of Literacy Resources, LLC d/b/a Heggerty. Heggerty is a leading early childhood literacy solutions provider offering a comprehensive suite of phonemic and phonological awareness solutions.

Heggerty’s product offering is anchored by its daily systematic phonemic and phonological awareness curriculum delivered in print and digital modalities that are used by more than 250,000 educators spanning from early pre-K to 5th grade. Heggerty has supplemented its foundational curriculum offering with a growing suite of solutions, including digital video content, digital assessment and screening tools, intervention curriculum, and decodable readers. Heggerty’s products are supported by professional development services and implementation support delivered by literacy specialists that embody Heggerty’s mission: to equip teachers with effective and engaging products and professional learning opportunities that help prepare and empower all students to become lifelong readers.

“Heggerty has differentiated itself by offering efficacious and engaging literacy solutions to the marketplace,” said Randall Hunt, Partner at L Squared. “The affinity with educators – both teachers and administrators – speaks volumes about Heggerty’s unique ability to address one of the largest challenges facing the education sector today.”

Joining Heggerty’s Board of Advisors are long-time L Squared executive partners, Ron Davies and Kai-lee Berke. Ron and Kai-lee bring decades of experience in the early education sector and will assist the Heggerty leadership team with ongoing product development as well as sales and marketing initiatives.

“I’m thrilled to partner with L Squared to accelerate Heggerty’s mission,” said Andrew Follett, Heggerty’s CEO. “The L Squared team brings a long track record of success in the education sector and together we’re committed to maximizing the impact that Heggerty will have on student reading proficiency in North America and beyond.”

L Squared Capital Partners, Longview Asset Management, and the existing Heggerty shareholders – Pondera Holdings and Heggerty’s executive team – contributed equity for the transaction. BMO Sponsor Finance and New Canaan Funding led the debt financing to support the recapitalization. William Blair served as an advisor to L Squared and White & Case LLP served as legal counsel. Macquarie Capital advised Heggerty on the transaction and Reed Smith LLP served as legal counsel. The L Squared deal team was composed of Randall Hunt, Jeff Farrero, Tyler Huez, and Edmund Montanari.

About L Squared Capital Partners
L Squared Capital Partners is an investment firm headquartered in Newport Beach, CA that seeks to make long-term investments in leading growth companies that operate in targeted sectors: Education Technology, Tech-Enabled Services & Software, and Industrial Technology & Services. Our unique investor base of family offices enables us to focus on long-term value creation driven by revenue and earnings growth, not financial engineering or market timing. The principals of L Squared have worked together for over a decade and have over 100 years of combined experience investing in growing private companies. For additional information, please visit www.LSquaredCap.com.

About Heggerty
Heggerty offers a comprehensive suite of phonemic and phonological awareness to educators spanning from early pre-K to 5th grade. Heggerty’s mission is to equip teachers with effective and engaging literacy products and professional learning opportunities that help prepare and empower all students to become lifelong readers. For additional information, please visit www.Heggerty.org.