News

October 17, 2022

LNC Partners Recapitalizes Its Portfolio Company OutSolve

Reston, VA – October 17, 2022. LNC Partners, a middle market focused private equity firm, has sold a majority equity investment in OutSolve, LLC (“OutSolve” or the “Company”), a provider of outsourced labor and employment compliance solutions, held by its Fund I. The Riverside Company, a global private investor focused on the smaller end of the middle market, became a majority investor in OutSolve in the transaction, and LNC’s Fund II is also a new investor in the Company.

OutSolve provides compliance solutions to help clients adhere to federal contracting standards and other regulations designed to promote non-discriminatory policies in the workplace. The Company, which was founded in 1998, services more than 2,000 customers in a variety of industries across the U.S.

LNC invested in OutSolve in November 2016 with a goal of providing strategic and financial resources that would allow OutSolve to accelerate its growth, both organically and through acquisitions. LNC’s investment team supported OutSolve’s management in achieving those goals, in part through the completion of eight acquisitions. As a result, OutSolve’s revenue and employee base each grew by more than 3.5x during LNC’s investment period, firmly establishing the Company as a leader in its industry.

Jeremy Mancheski, OutSolve Co-Founder and President, noted that, “LNC has been a fantastic partner for OutSolve over the last six years, as they provided significant support that allowed OutSolve to achieve its growth goals, while maintaining high standards of client service and providing expanded opportunities for our employees”. He continued, “Additionally, OutSolve benefitted from LNC’s ability to provide flexible capital in the form of both equity and debt, which provided numerous advantages over the life of their investment.”

LNC’s experience investing in tech-enabled business services companies, as well as in regulatory-driven compliance markets, made OutSolve a natural fit for its portfolio.

LNC Partners’ investment in OutSolve was led by Matt Kelty (Managing Partner) and Kevin Cunningham (Managing Director). Other LNC employees supporting OutSolve included Jon Felsher (Principal), Justin McCarthy (Associate), and Charlotte Castronovo (Associate). Five Points Capital was a co-investor in the original transaction and a valued partner during the investment period.

OutSolve’s advisors on the transaction included Houlihan Lokey (financial) and Moore & Van Allen PLLC (legal).

LNC Partners

LNC Partners is a private equity firm focused on assisting middle market companies achieve their potential by offering strategic support and flexible capital in the form of equity (majority or minority positions) and debt. LNC Partners, based in Northern Virginia, invests across a broad range of service industries and typically provides at least $10 million of capital to companies that generate at least
$2 million of EBITDA. More information on LNC Partners can be found at www.LNC-Partners.com.

The Riverside Company

The Riverside Company is a global private equity firm focused on investing in growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has made more than 850 investments. The firm’s international private equity and structured capital portfolios include more than 140 companies.