PRIVATE EQUITY
STRUCTURED CAPITAL

CASE STUDIES

Industry Vertical
Business Services & Consumer
Headquarters
Atlanta, GA

www.insightglobal.com

Insight Global, Inc.

  • Business

    Insight Global (“Insight”) is one of the fastest growing and among the top 5 providers of information technology, accounting, finance and engineering staffing solutions throughout North America. Through a network of 44 offices, Insight fills temporary and permanent staffing placements for a variety of Fortune 500 corporations.

  • Situation

    Harvest participated in a competitive process to acquire Insight. In addition to valuation, the seller was very concerned with certainty and speed to close due to turbulent debt markets. To differentiate itself, Harvest partnered early in the process with two of its limited partners to develop a unique senior, subordinated, and preferred equity structure that became a significant competitive advantage. Additionally, during the due diligence process, Harvest leveraged its previous experience and network in the staffing industry to consult with a number of former and current CEOs and board members of staffing businesses. Specifically, the Firm partnered with Walt Macauley, the former CEO of Career Horizons, a highly successful former Harvest portfolio company in the staffing industry.

  • Harvest Partners Investment

    In June 2010, Harvest purchased Insight with the existing management team. To fund the acquisition Harvest arranged the financing, which included a senior credit facility, a mezzanine note and some preferred equity. In addition, Harvest underwrote and syndicated significant equity co-investment capital.

    In October 2012, Harvest recapitalized Insight. To fund the recapitalization Harvest and Ares Capital provided equity capital and arranged a first and second lien credit facility.

  • Investment Thesis

    • Optimal time to invest in staffing industry
    • Information technology a highly attractive sub-sector
    • Differentiated strategy and execution
    • Significant growth potential
  • Value Creation

    • Market growth
    • Gained market share
    • New office openings
    • Bolstered infrastructure and strategic support
  • Outcome

    • Completed recapitalization with Ares Capital in October 2012