Why PE firms like LLCP, Vista and Clearlake are backing workforce management tech

In the first five weeks of 2022, PE Hub has seen a slew of PE deals focused on issues like scheduling professionals and helping them manage workspaces.

As workforce management challenges have risen in recent months, we’ve seen many private equity firms invest in technology companies aimed at addressing some of the challenges, including scheduling and managing fluid workspaces.

The trend began to pick up last year. For example, back in August, Symplr, an enterprise healthcare operations business that offers governance, risk management and compliance software services, acquired SpinFusion, which develops software for physician scheduling. Symplr is backed by Clearlake Capital Group and Charlesbank Capital Partners.

But in the first five weeks of 2022, we’ve seen a slew of PE deals focused on issues like scheduling professionals and helping them manage workspaces in the current era of hybrid work. Here are some that caught our eye:

On February 2, BigHand, a portfolio company of Levine Leichtman Capital Partners, announced the acquisition of Iridium Technology from Polaris Growth Fund. Iridium is a legal business intelligence and analytics software provider to law firms.

“LLCP is attracted to vertical software providers in end markets that we know well – which includes legal firms and legal practitioners to improve their efficiency and productivity,” Michael Weinberg, managing partner at LLCP, told PE Hub. Iridium has “a global, resilient customer base and is growing both organically and through continued M&A activity in the sector. We are excited for its prospects and would consider additional investments in other sectors with similar characteristics.”

On January 28, PE firm GodSpeed Capital announced acquisition of Savli Group, a provider of software and information technology to mission-oriented federal agencies. Savli’s offerings leverage the popular ServiceNow workflow software.

On January 26, Norland Capital said it has made an investment in iWorQ Systems, a provider of business-critical workflow software. iWorQ helps cities and counties manage everything from permitting, planning and zoning, code enforcement, licensing, work orders, inspections, fleet and fuel tracking, pavement management, backflow prevention, stormwater management and facility management, among other features.

And on January 11, Santa Monica-based health-tech communications platform provider TigerConnect said it received a $300 million investment from New York-based private equity firm Vista Equity Partners.

Vista also invested $150 million in OfficeSpace Software Inc in a deal announced January 21. OfficeSpace is a software the simplifies working organization, from space management to social distancing and booking desk requests from employees.

We expect to see many more PE investments in workforce management technology.