MidOcean makes 8.5x its money on sale of The Planet Group

MidOcean generated an 88% IRR on the sale of the human capital platform to ProPharma Group, a portfolio company of Odyssey Investment Partners.

MidOcean Partners produced an 8.5x return on investment for The Planet Group, exiting its majority stake through a sale to Odyssey Investment Partners’ ProPharma Group, according to an investor familiar with the transaction.  

The New York-based alternative asset manager, which specializes in mid-market private equity and alternative credit investments, backed The Planet Group in January 2018.

With the sale, MidOcean generated an 88 percent IRR, the source said. 

Under MidOcean, the company has seen significant organic and inorganic growth, entering new markets and executing six add-on acquisitions – IT Works Recruitment, Interactive Business Systems, NDA Partners and WinterWyman, among others. The Planet Group quadrupled EBITDA during MidOcean’s investment, according to a Wednesday press release

Based in Chicago, The Planet Group provides outsourced global workforce solutions and consulting services to Fortune 500 and other top companies. Now comprising nine entities, it addresses the professional services needs of organizations in the life sciences, technology, diversified energy & engineering, accounting & finance, human resources, healthcare and digital marketing areas.

For ProPharma, the acquisition is its second since Odyssey Investment Partners last year bought the compliance-related pharma services company from Linden Capital Partners. The deal commanded a more than $500 million valuation, sources familiar with deal terms told PE Hub at the time

In March, ProPharma announced its purchase of Diamond Pharma Services, which provides regulatory affairs, pharmacovigilance and compliance and quality services to support pharmaceutical and biotechnology companies in obtaining and maintaining medicinal product licenses throughout all stages of a product’s life cycle.

MidOcean, for its part, has deep roots investing behind human capital businesses.

Earlier investments include System One, a provider of staffing and outsourced services in the engineering, scientific, communications, technology and legal areas; and Global Knowledge, a provider of IT training to corporate clients. The firm exited these investments in 2016 and 2015, respectively. 

William Blair, Houlihan Lokey and FocalPoint Partners advised The Planet Group on the transaction.