#USA #Scottsdale #HGGC #Montage Partners #Equity Methods

Montage Partners' Strategic Journey

In a powerful move within the private equity space, Montage Partners, headquartered in Scottsdale, Arizona, has successfully exited its investment in Equity Methods, a leading firm specializing in stock-based compensation services. This strategic sale to HGGC, a prominent private equity firm based in Palo Alto, California, marks the culmination of a fruitful partnership that has spanned 13 years.

Founded in 2004, Montage Partners is renowned for its people-first approach in private equity, specifically targeting businesses that demonstrate the potential for transformative growth. Equity Methods, once a division of Bank of America Merrill Lynch, sought independence and a fresh strategic partner in 2012, a partnership that Montage was eager to cultivate.

Growth and Success

During the relationship, Equity Methods has seen an impressive increase in revenue, soaring more than tenfold, and has expanded its team fivefold. By aligning their strategic focus on long-term growth, Montage Partners provided crucial support that facilitated the launch of several proprietary software tools and broadened service offerings. These achievements didn’t go unnoticed; Equity Methods made its mark on Inc. 5000’s list of fastest-growing private companies in America.

Equity Methods has cultivated a distinguished reputation based on its commitment to exceptional client service. With a Net Promoter Score of 95—compared to less than half from its closest competitor—its promise of quality has resonated across its client base, which includes over 20% of Fortune 500 companies.

A Bittersweet Departure

Jordan Tate, co-Managing Partner at Montage Partners, reflected on their journey with Equity Methods, stating, “We’ve been fortunate to partner with Equity Methods not only as investors but as trusted collaborators.” Such sentiments highlight the deep-seated relationships and camaraderie built over the years between the teams.

Moving forward, Takis Makridis, the President and CEO of Equity Methods, echoes this sentiment, expressing immense gratitude for the support received from Montage Partners. He values the trust and belief in their team, crediting it as essential to reaching new heights.

Looking Ahead

As HGGC takes the reins of Equity Methods, the groundwork laid over the past 13 years sets a promising foundation. HGGC’s values-driven approach is poised to align with the ethos cultivated by Montage, facilitating continued success for Equity Methods and its clients.

Montage Partners will continue its investment strategy by seeking businesses with EBITDA between $1.5 million to $7 million across various sectors, including technology and professional services. This investment philosophy has garnered the firm a rich history of assisting companies in achieving aggressive scalability and market leadership.

By focusing on exceptional management teams and fostering enduring partnerships, Montage Partners aims to replicate the success achieved with Equity Methods across its future investment endeavors.

In short, the successful exit not only culminates a significant partnership but also signifies a continuum of excellence that both firms aspire to uphold in the private equity landscape.