David French
(Reuters) – Bain Capital is taking a $250 million minority stake in business services firm Sikich, which plans to use the investment to fund its expansion plans, the companies said on Thursday.
The private equity firm is the first outside investor in Chicago-based Sikich, which was founded in 1982. The $250 million is structured as preferred shares, the companies told Reuters.
Sikich CEO Christopher Geyer said the company had reached an “inflection point” in its growth and Bain’s involvement in the business would help Sikich take the next steps in its development.
The company has doubled in size over the past five years and plans further expansion through new acquisitions and strategic partnerships, according to a joint statement. Bain did not disclose how much Sikich would be valued after the investment.
Sikich currently employs more than 2,000 people and operates in the United States and internationally. Its services include auditing, employee program management and succession planning.
“Sikich’s differentiated business model has enabled the company to gain share in a fragmented market,” said Cristian Gitianu, partner at Bain Capital Special Situations.
While large volumes of leveraged buyouts have declined over the past two years as soaring funding costs have made it harder to access debt financing, the volume of so-called growth equity investments by private equity firms has remained at healthy levels, according to an April report. from data provider PitchBook.