CTPartners Receives Rescue Financing As Investors Take Note Of An Industry In Overdrive

February 8, 2015 – Reclusive financier Austin W. Marxe, president of AWM Investment Company, has ponied up a $5 million lifeline to help CTPartners stave off short term cash flow needs and keep the company afloat. Mr. Marxe acquired 1.45 million shares of the embattled global search firm at $3.44 per share last week. His hedge fund stands to reap an immediate return on its investment should a looming deal by DHR International to acquire CTPartners and take it private occur. DHR’s unsolicited offer is said to be under review along with other proposals by the CTPartners’ board. Mr. Marxe’s investment vehicles reportedly own 19 percent of CTPartners, making it one of the company’s largest shareholders. “Executive search firms are seen as excellent investments right now,” said HSZ Media managing director Scott A. Scanlon. “Private equity money is starting to flow in at different entry points as investors take note of search firms’ expanding service platforms and their ability to scale and grow with capital infusion. Everything’s up, up, up and investors want in on the ride.” According to HSZ Media’s 2015 rankings report, due out next month, search firms across the board are showing robust signs of strength, particularly in the expansive U.S. market. “Growth rates of 15, 20, 25 percent and higher are commonplace among this year’s Top 50 ranked firms,” said Mr. Scanlon. According to the HSZ Media report, the surge in recruiting and related leadership assessment service activities in the U.S. is not limited to one demographic group; larger and more established players like Egon Zehnder (up 23 percent) and Spencer Stuart (up 11.5 percent) are generally enjoying the same double digit uptick in business as rivals at the other end of the spectrum where high growth rates are easier to attain. “I haven’t seen the recruiting industry this heady since the mid to late 1990s,” said Mr. Scanlon. “It is astounding given where we were just five years ago.”

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