PayLease, FolioDynamix go up for sale

We have two small deals in the financial technology space.

PayLease, which is backed by Mainsail Partners, is up for sale, five sources said. Raymond James is advising on the process, the persons said.

The auction is far along and has progressed to the second round, the persons said. PayLease is seeking bids of roughly $120 million, the sources said.

San Diego-based PayLease is an electronic payments provider for the property management industry. The company was founded in 2003 by Ty Kalklosch, PayLease’s VP of revenue, and Yann Phung, VP of operations.

Mainsail, a San Francisco growth equity firm, invested in PayLease in 2010. The firm has nearly $400 million of committed capital and invests in industries such as software, e-commerce, financial technology and healthcare IT, according to the Mainsail website.

Executives at PayLease, Mainsail and Raymond James could not be reached for comment.

Separately, FolioDynamix, which is backed by Edison Ventures and ABS Capital Partners, is also on the block, two sources said. Evercore is advising on the process, the persons said.

New York-based FolioDynamix provides software for wealth management firms and their affiliated investment advisers. FolioDynamix is seeking a majority recap with a private equity firm or a strategic investor, one banker said. The company produces $40 million in revenue while EBITDA is break-even, the source said.

FolioDynamix could sell for $200 million or more, the source said.

Edison Ventures’ investment dates back to 2008 when it led a $7.5 million round for FolioDynamix. In 2011, ABS Capital Partners led a $16 million growth equity investment in the company. Velocity Financial Group is also an investor.

Executives at FolioDynamix, Edison Ventures and ABS Capital did not return calls/messages for comment.

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