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BOW RIVER CAPITAL COMPLETES ABSENCESOFT RECAPITALIZATION
August, 12 2021 | Software Growth Equity
Bow River Capital’s Software Growth Equity Fund announced today that it has completed the previously announced transaction to recapitalize AbsenceSoft with Norwest Venture Partners, a leading venture and growth equity investment firm managing more than $9.5 billion in capital. Terms of the transaction were not disclosed.
AbsenceSoft, the market-leading, cloud-based total absence management platform, introduced its core software system, AbsenceTracker, eight years ago. Since inception, its pure SaaS platform has proven to quickly address the market needs for complex compliance monitoring, and configurable workflow and reporting solutions for FMLA, ADA, Disability, and all forms of employee absenteeism.
Bow River Capital’s Software Growth Equity Fund will maintain a significant equity stake and board seat in AbsenceSoft to help drive continued smart growth across all dimensions of the business.
Bow River Capital’s Software Growth Equity team took majority ownership of AbsenceSoft in April 2019 and, working in partnership with veteran SaaS executives John Huettel, Jimmy Gulick, Joe DiPaulo, Christian Ellis and company founder Seth Turner, implemented its performance playbook during the course of the last 2 ½ years. Together, the team organically tripled AbsenceSoft’s annualized revenue run rate, and invested heavily in research and development to rapidly expand its product portfolio.
“The business has experienced radical transformation and this transaction marks the validation of the Software Growth Equity Fund’s performance playbook and value creation strategies to build another market winner,” stated John Raeder, Managing Director and Head of Software Investments for Bow River Capital. He further said, “We are thrilled to close the recapitalization of AbsenceSoft, and are looking forward to working with Norwest Venture Partners, John Huettel and this exceptional team as we continue to seek further growth and scale for the company.”
“This is an example of our deep operational expertise focused on supporting exceptional management, installing operational enhancements and quality metrics-based reporting, and rapidly executing to our investment thesis and strategies,” stated Dave Walters, Director at Bow River Capital.
Holland and Hart LLP provided legal counsel to AbsenceSoft and Bow River Capital’s Software Growth Equity Fund.
About Bow River Capital
Founded in 2003, Bow River Capital is a private alternative asset management company based in Denver, Colorado with Software Growth Equity, Private Equity, and Real Estate platforms. The Bow River Capital platforms focus on the lower middle market across a geographic area referred to as Bow River Capital’s Rodeo Region®. Collectively, Bow River Capital has deployed capital into diverse industries, asset classes, and across the capital structure. For more information on Bow River, please visit www.bowrivercapital.com
AbsenceSoft, backed by Bow River Capital Software Growth Equity Fund and Norwest Venture Partners, is a market-leading, cloud-based Total Absence Management platform. The company delivers modern, easy-to-use, and flexible software to manage FMLA, ADA, Disability, and other forms of leave efficiently and cost-effectively. AbsenceSoft is trusted by companies of all sizes and in every industry to save time, reduce risk, improve employee experience and stay compliant. Learn more at www.AbsenceSoft.com
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This document has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell interests or any other security or instrument or to participate in any particular investment strategy. Any such offering or solicitation will be made pursuant to a confidential private offering memorandum that will be furnished only to qualified investors and only in those jurisdictions, where permitted by law.
All statements made herein are opinions of Bow River and should not be construed as investment advice and recommendations.
Bow River may modify its investment strategy and targets at any time and in any manner in which it believes is consistent with its overall investment objective in response to market conditions or other factors without notice to investors.
Select Case Study – The asset described above is only a sampling of the assets held in the Fund and has been chosen solely based on objective non-performance-based criteria and are intended solely to illustrate the breadth and depth of Bow River’s experience. There is no guarantee that any future investments will be profitable.