Caldwell Posts 17 Percent Revenue Gain

Executive search firms continue to roar back as the market continues to fluctuate. The latest to report is from Caldwell, which posted a 17 percent revenue gain in its fiscal Q3 results. Let’s go inside the latest numbers.

July 14, 2022 – Toronto-based Caldwell posted Q3 revenues of $41.9 million (Canadian), a 17 percent increase from a year ago. Financial results include those of IQTalent Partners (IQTP). “This marks the fifth consecutive quarter of record year-over-year revenue results,” said John Wallace, CEO. “Consolidated revenue for the quarter was $41.9 million (a 17 percent increase over the prior year) and $120.2 million for the fiscal year to date (a 54 percent increase over the prior year).Our Caldwell executive search segment contributed $26.5 million in professional fees in the third quarter – largely flat coming off a surge that began building in the third quarter of last year.”

“We experienced continued robust growth at our IQTP segment, generating $15.2 million in professional fees during the third quarter – a 72 percent increase from the prior year,” said Mr. Wallace. “While rising inflation, interest rates, and geopolitical tensions in Europe may bring moderation to our near-term growth, executive search trends remain strong, we are at a record high partner count and focused on continued partner recruitment, and IQTP’s flexible on-demand pricing model and innovative use of AI technology continues to resonate with our clients and their talent needs.”

“Over the last two years we have implemented a deliberate strategy aimed at expanding and modernizing the range of talent acquisition solutions we deliver to our clients,” Mr. Wallace said. “We now integrate outcome-oriented service with innovative technology to deliver a wider range of talent acquisition solutions to our clients. With IQTP providing recurring talent procurement support and Caldwell engaged for higher end retained executive searches not undertaken by our clients’ in-house teams, we can provide seamless support for our clients’ talent acquisition needs at all levels. We do anticipate benefitting from an increasingly diversified mix of products and services, with cross-collaboration opportunities between our two business segments expected to amplify our long-term success. We also continue to review business and technology acquisition opportunities that align with client-driven talent offerings and our driving principle, that talent transforms.”

Recent Growth

Caldwell recently expanded with the opening of new locations in Annapolis, MD and Tysons Corner, VA, in the Washington, D.C. area. In conjunction, the firm added Byron Marchant as a partner and Tiffany Faucette as an associate. The moves expand the firm’s capabilities and add focus on the sports and entertainment industry, federal and state public sector, and the public utilities space. “This is an exciting next step for Caldwell,” said Chris Beck, president. “We’re thrilled to have such exceptional people join our outstanding team and lead our continued growth in the mid-Atlantic market and our firm.”

Mr. Marchant will serve in the board and CEO practice. He joined Caldwell from the U.S. Naval Academy Alumni and Foundation, where he served as president and CEO for over 13 years. His tenure was highlighted by his steady, strategic leadership for the organization through the 2009 recession and the ongoing COVID-19 pandemic, said Caldwell. Mr. Marchant oversaw the most successful campaign in organization’s history, raising more than $541 million in support of the Naval Academy’s Strategic Plan 2020. Previously, Mr. Marchant served as executive vice president, general counsel, and chief administrative officer for Black Entertainment Television (BET).

“Byron has a successful track record that cuts across a wide range of areas – from his impressive tenure leading the U.S. Naval Academy Alumni and Foundation to his role in the $3 billion acquisition of BET by Viacom to his background with technology and nuclear submarines in the Navy and everything in between,” said Jay Millen, managing partner of Caldwell’s board and CEO practice. “He’s an incredibly accomplished individual with an exceptionally wide network of content, which together make him a true asset to the team.”

Ms. Faucette has a 30-year track record in the professional sports world as an award-winning LPGA instructor, competitor, entrepreneur, and author, delivering a rare combination of sports and business acumen, said Caldwell. Additionally, she launched FG Enterprises, which conceived, developed, patented, and released globally available products, as well as an instructional book. She has made numerous appearances on television and talk radio, including The Golf Channel, NBC, ABC, and Fox. Ms. Faucette holds a bachelor’s degree in marketing from Florida State University.

A New Alliance

Earlier this year, Caldwell forged an international alliance partnership with Johnson Partners, a consulting firm working in board search, executive search, and leadership succession with offices across Australia. In connection with the alliance, Johnson Partners has acquired the business of Caldwell’s non-owned New Zealand licensee, and integrated Caldwell’s Australian team. Johnson Partners will become Caldwell’s external search partner for Australia and New Zealand, and Caldwell will become Johnson Partners’ external search partner for North America and the U.K.

“Johnson Partners is one of the region’s most successful and influential executive search firms, widely recognized for their long-lasting collaborative partnerships with clients,” said Mr. Beck. “This reciprocal alliance is beneficial in several ways. First, it will allow us to jointly conduct transformative searches across the globe at the very highest levels of management and operations, with a keen eye towards delivering outstanding outcomes for our clients. Second, we believe this considerable expansion with the Johnson Partners team will drive greater worldwide revenue opportunities for Caldwell, further creating value for our shareholders.”

Caldwell also recently expanded its private equity and technology recruiting capabilities with the addition of Gordon Berridge as a partner in the private equity and venture capital and technology practices and based in the firm’s London office. Mr. Berridge joins Caldwell from N2Growth in London where, as a senior partner, he was a key figure in the build-out of the European business for the firm.

Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media

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