Mill Rock and ICG invest in recruitment firm TESG

Mill Rock Capital and Intermediate Capital Group have made an investment in New York-based TESG, a recruitment firm.

Mill Rock Capital and Intermediate Capital Group have made an investment in New York-based TESG, a recruitment firm. No financial terms were disclosed.


NEW YORK, April 6, 2021 /PRNewswire/ — Mill Rock Capital (“Mill Rock”), a growth and operations oriented private investment firm, announced today that it has invested in The Execu|Search Group (“TESG” or “the Company”), a leading full-service recruitment firm, in partnership with Intermediate Capital Group plc (“ICG”). TESG’s founder Ed Fleischman will maintain a significant minority investment in the business and remain on the board of directors. Mill Rock’s investment will support the continued growth and expansion of the Company. Financial terms of the transaction were not disclosed.

Based in New York, TESG is a leading national direct hire recruitment, contract staffing, and workforce solutions firm with offices throughout the U.S. The company specializes in highly skilled, in-demand positions across a variety of markets. Focus end markets include healthcare, technology, pharmaceutical, and professional services (including accounting, financial services, human resources, administration and legal). TESG’s established track record of finding and placing mission-critical talent has resulted in decades-long relationships with some of the country’s best-known firms.

“This is an exciting development for TESG’s clients and dedicated team members. We are eager to build upon our strong momentum and continue to grow as a leading specialty staffing firm,” said TESG’s Chief Executive Officer Larry Dolinko. “This transaction will facilitate the achievement of our growth objectives, continued geographic expansion and enhancement of our service capabilities with new and existing clients,” added President Kyle Mattice.

“We are delighted to partner with Larry, Kyle, and the entire TESG team as they continue to build upon the Company’s strong and technologically advanced platform,” said incoming Executive Chairman and Senior Partner of Mill Rock, Charles Heskett. “We have been impressed by TESG’s long term performance, most recently amidst the pandemic, during which the company rapidly scaled to meet critical healthcare requirements in more than a dozen states.”

“TESG is a client-centric firm with a differentiated business model, and we are thrilled to partner with Mill Rock and management to support the next stage of growth and national expansion,” said Justin McDougall, ICG Principal on the Strategic Equity team and incoming member of TESG’s board of directors.

ICG Operating Partner, Thomas Staudt, will also join the board of directors and focus on helping the Company drive growth and commercial excellence. In addition to Dolinko, Fleischman, Heskett, McDougall, Staudt and Mattice, Blair Johnson, Jeffrey Long, Adi Pekmezovic and Christopher Whalen have joined TESG’s board of directors.

William Blair & Company, Houlihan Lokey, Credit Suisse Securities (USA) LLC and Covington & Burling LLP advised Mill Rock Capital on the transaction. Weil, Gotshal & Manges LLP advised ICG. Houlihan Lokey, Latham & Watkins, Citrin Cooperman, Kelley Drye & Warren LLP and Zukerman Gore Brandeis & Crossman, LLP advised the Company.

Founded in 1985 and headquartered in New York, New York, The Execu|Search Group is a leading full-service firm that provides direct hire recruitment, contract and staff augmentation, and workforce solutions. TESG provides high-demand, short-supply professional skill sets across a diverse range of attractive market segments, including healthcare, technology, pharmaceutical, and professional services. The company has filled more than 100,000 open positions on behalf of over 35,000 clients and has a nationwide presence. TESG has been recognized by Staffing Industry Analysts as one of the largest staffing firms in the US and has been named a “Best Place to Work.” For more information, please visit