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What is normal?
We thought that zero interest rates, frenetic deal pace and the indiscriminate increase in asset values that characterized 2021 were temporary. We also believe that the prohibitive cost of debt, bank deposit crisis, significant economic uncertainty and the business caution that have dominated 2023 are a moment in time. But the macro continues to be hard to predict; the markets will evolve and there will always be winners and losers.
“Parthenon normal” for over two decades has been adherence to our investment principles: (i) identify growth market opportunities in our core sectors of financial services, healthcare and business/tech services (“Core Sectors”), (ii) partner with management teams to develop and/or optimize strategic plans and (iii) transform companies into “franchise assets” through further investments, implementation of best practices and hard work. We continue to emphasize strategic rigor, sector specialization, innovation, alignment, collaboration and transparency.
We remain optimistic about the future - the policies coming out of the Covid-19 crisis have primarily run their course, the entrepreneurial spirit is vibrant and technological and informational advancements create more opportunities for growth and transformation.
We executed throughout 2023 with accomplishments including:
- Raised and closed $4.6 billion Fund VII
- 3 new investments (Pavilion Payments, Titan Wealth and Payroc)
- 24 add-on acquisitions at 7 portfolio companies
- 20 new C-suite executives at 12 portfolio companies, including two CEOs
- 13 new Parthenon employees
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New Fund
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New Investments
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Pavilion Payments (“Pavilion”), formerly Global Payments Gaming Solutions, is our most recent payments investment and is a carve-out of Global Payments (NYSE: GPN). Pavilion enables gaming entertainment leaders to enhance consumer experiences and maximize spend across all their physical and digital properties. Pavilion is a leading payment solution provider to the gaming industry, providing integrated omnichannel and software solutions that enable flexible funding, play and cash out. For more information visit www.pavilionpayments.com.
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Titan Wealth Holdings (“Titan”) is a UK-based wealth and asset management business with a vertically integrated model. Titan provides "client-to-custody" wealth management solutions spanning financial advice, investment management, platform technology, and custody. Titan serves both retail clients as well as independent financial advisors, asset managers and other financial institutions. As a pioneer in these subsectors in the U.S., we believe the consolidation opportunity in the UK is significant and that Titan presents a unique opportunity to build a differentiated market leader. For more information visit www.titanwh.com.
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Payroc completed two significant acquisitions and a Parthenon-led growth equity financing in 2023. The Company is poised to continue to execute on its growth and M&A strategy. Payroc was formed by Parthenon via a 4-way merger in 2019 and has completed 14 acquisitions since, becoming a top 6 non-bank merchant acquirer processor and the acquirer of choice. With Parthenon’s new capital, Payroc’s goal is to be the differentiated omni-channel integrated payments leader and more than double its business over the next three years. For more information visit www.payroc.com.
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Add-On Aquisitions At
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Team
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Promoted to Partner |
Dan Killeen |
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New Vice Presidents |
Gabe Moynihan & Carson Gibson Weis |
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Promoted to Sr. Associate |
Zach Brown, Michael Krantz, Murtaza Mubin & Barry Thrasher |
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Promoted to Associate |
Matt Feist & Anne Sensenig |
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New Associates |
Jack Amoroso, Kevin Davidson & Lucy Sun |
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New Analysts |
Ram Capoor, William Cheng, Alina Dong, Mike Mazzola, Julius Olitan & Steven Sun |
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Finance & Admin |
Michelle Currie promoted to Controller |
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New Fin & Admin Team |
Dominique Chery & Elyse Yun |
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Investment Philosophy
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We are growth-oriented private equity investors with decades of experience in our Core Sectors
- $100-$750 million equity investments per platform (and $1 billion + with LP co-invest)
- Ability to start small and execute ambitious growth plans
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We partner with management teams to develop and implement bold strategic visions for our companies to make them leaders in their niche markets
- Emphasis on alignment amongst stakeholders
- Expertise to understand complicated and “off-the-run” situations
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We provide resources and know-how to transform companies into franchise assets
- Buy-and-build with two-thirds of our portfolio highly acquisitive, averaging eight add-ons per company
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Resources to develop and build infrastructure and repeatable process: corporate development, sales and marketing, capital markets, M&A integration, IT, HR and talent management, strategic FP&A, finance and reporting
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We appreciate all the hard work and thoughtfulness of our management, their teams, our colleagues, investors, advisors and partners. We look forward to working with you in 2024. Thank you for your support.
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Austin | 512-813-4900
Boston | 617-960-4000
San Francisco | 415-913-3900
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© 2024 PCP Enterprise, L.P. All Rights Reserved.
Parthenon, Parthenon Capital, Parthenon Capital Partners and all related logos are registered service marks of PCP Enterprise, L.P.
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