Hunt Scanlon’s Top 5 Recruiting Acquisitions of 2023
December 21, 2023 – Acquisitions made huge news in the executive search industry this year, and for good reason. Outside investors finally caught on to the sector’s expansion potential and long growth runway ahead. Top search leaders also found ways to maximize profit. That made them highly attractive to private equity firms looking for platforms they could accelerate. Hunt Scanlon Ventures was at the center of much of this consolidation activity, having closed 14 deals since its inception. Hunt Scanlon’s M&A business has 14 more deals in the pipeline.
The reasons and strategies behind the deals varied, but strengthening offerings and gaining market share was on everyone’s mind. ZRG Partners, which has been steadily expanding in recent years, acquired The Registry, an interim executive solutions firm specializing in higher education. Meanwhile, Russell Reynolds Associates has acquired Savage Partners, a boutique executive search firm that serves growth equity and private equity-backed software companies across North America. Hunt Scanlon Ventures facilitated both of those deals.
Overseas, The LCap Group, a strategic investor based in London, acquired a stake in U.K.-based Altus Partners, a buy-side specialist executive search firm with 30 professionals focused on filling roles for investment, M&A, and finance leadership. Private equity-backed Kingsley Gate also acquired London-headquartered The Omerta Group (TOG), an executive search firm specializing in financial services.
Lastly, 2023 started off with Diversified Search Group (DSG), a leading search firm backed by private equity firm ShoreView Industries, acquired Yardstick Management, a black-owned management consulting and executive search firm.
Let’s go inside the deal making that made headlines in 2023!
ZRG Acquires Interim Education-Focused Search Provider The Registry
ZRG, a global talent advisory firm and portfolio company of RFE Investment Partners, has acquired The Registry, a Peabody, MA-based interim executive solutions firm specializing in higher education. Financial terms of the deal were not disclosed. “The Registry is the nation’s top firm providing the best-matched interim solutions to institutions of higher learning, especially colleges and universities that are going through challenging transitions,” said Larry Hartmann, CEO of ZRG. “Adding The Registry to the family of ZRG companies puts us in a leadership position in providing talent solutions in higher education.” Since 1992, The Registry has helped colleges and universities across the U.S. and abroad during times of transition with experienced and diverse interim leaders. The firm has recorded 1,200 placements at over 500 institutions of all types. “This acquisition is a huge win for ZRG,” said Scott A. Scanlon, CEO of Hunt Scanlon Ventures based in Greenwich, Conn., which helped facilitate the transaction and served as a strategic advisor to ZRG and The Registry. “It complements a fast-growing interim solutions platform that ZRG has been strategically building, but it also enhances one of ZRG’s key executive search verticals in higher education.” Mr. Scanlon said the acquisition is ZRG’s largest to date. “Calls for interim leaders are gaining wider traction as demographics shift and talent needs change,” said Mr. Scanlon. “The most sought after ‘on-demand’ roles are increasingly found across the C-suite – and now in every industry – and that makes interim solutions one of the biggest growth areas of recruiting,” he said.
Russell Reynolds Associates Acquires Savage Partners
Global leadership advisory firm Russell Reynolds Associates has acquired Savage Partners, a boutique executive search firm that serves growth equity and private equity-backed software companies across North America. Financial terms of the deal were not disclosed. Intrepid Investment Bankers acted as the strategic advisor to Russell Reynolds Associates in the transaction. Hunt Scanlon Ventures, a Connecticut-based human capital M&A advisory firm, served as the strategic advisor to Savage Partners. “Savage Partners is a trophy property and their acquisition by Russell Reynolds Associates will be beneficial to clients across the tech space as the sector continues to evolve with its insatiable demand for senior-level leadership talent,” said Scott A. Scanlon, CEO of Hunt Scanlon Ventures, based in Greenwich, Conn. “Bringing Savage Partners on board will further deepen and enhance Russell Reynolds Associates’ core leadership advisory work and capabilities in growth-oriented technology companies,” said Constantine Alexandrakis, CEO of Russell Reynolds Associates. “Savage Partners’ colleagues bring unparalleled industry expertise, and under Todd Savage’s leadership, have established themselves as a powerhouse team. We look forward to combining our strengths and assets to provide industry-leading leadership and succession planning guidance.” Savage Partners, founded in 2005, works with executives and investors across the technology industry. The Savage partners team will join Russell Reynolds’ Boston and Miami offices. Since co-founding the firm, Mr. Savage has completed over 200 senior executive searches for middle market, private equity-backed technology firms in infrastructure software, SaaS, eCommerce, consumer internet, and the mobile space. Previously, he worked for executive search firms Heidrick & Struggles and Ramsey Beirne Associates. Mr. Savage also built the internal recruiting function at Time Warner.
The LCap Group Takes Investment Stake in Altus Partners
The LCap Group, a strategic investor based in London, has acquired a stake in U.K.-based Altus Partners, a buy-side specialist executive search firm with 30 professionals focused on filling roles for investment, M&A, and finance leadership. The firm operates in several core areas of private equity, building out PE investment, finance, and investor relations teams, from analyst to partner level roles. The firm serves private equity-backed portfolio companies, focused on the finance and strategy, corporate development and commercial finance functions. Ed Chamberlain, founder of Altus Partners, has established a strong record over many years within private equity recruiting. Over a long career in the sector, he has built long-standing, trusted relationships with key figures around the private equity sector. In 2006, he helped establish One Search before identifying a gap in the market and setting up Altus Partners in 2009. Mr. Chamberlain has also gone on to co-found sister company C&C Search, where he is chair to the board. “LCap brings a strong analytics platform to Ed Chamberlain and his team at Altus Partners,” said Scott A. Scanlon, co-founder and CEO of Greenwich, Conn.-based Hunt Scanlon Ventures, which offers a full range of critical M&A solutions to guide founders and management teams across the human capital industry to successful exits. “That capability is in high demand across the private equity sector at the moment and will allow Altus to better evaluate the impact that leadership teams will have on the future performance of their client companies,” said Mr. Scanlon. “Leadership, as we all know, is now seen as the primary lever of value creation in high growth, PE-backed and founder-led businesses, so this is an absolutely perfect fit.”
Kingsley Gate Partners Acquires The Omerta Group
Private equity-backed Kingsley Gate Partners has acquired London-headquartered The Omerta Group (TOG), an executive search firm specializing in financial services. Financial terms of the deal were not disclosed. “To have a truly global financial services practice, you must be in three locations: New York, London, and Hong Kong,” said Umesh Ramakrishnan, CEO of Kingsley Gate Partners. “This acquisition strengthens our position in these key markets.” The Omerta Group will complement Kingsley Gate Partners’ strength in the U.S. and will accelerate the firm’s growing footprint across the U.K., continental Europe, the Middle East, and Asia-Pacific. The acquisition brings the addition of 50 experienced global financial services specialists and also builds on Kingsley Gate Partners’ existing financial services expertise, particularly in asset management. The Omerta Group’s clients include investment banks, investment managers, private equity, hedge funds, quantitative trading platforms, exchanges, sovereign wealth funds, commodity trading houses, and firms within the digital asset and blockchain ecosystem. “Jason Mort and The Omerta Group have built a highly recognizable name in many of the key growth sectors within global financial services; we are thrilled to welcome them to Kingsley Gate Partners,” said Paige C. Scott, senior partner at Kingsley Gate Partners. “The infusion of their geographic and subject matter expertise, especially in capital markets, represents a critical inflection point for the growth of our existing financial services practice. By combining forces, we can bring our clients and our candidates the best regionalized experience in financial services search with a highly integrated global platform.”
Diversified Search Group Acquires Yardstick Management
Diversified Search Group (DSG), a leading search firm backed by private equity firm ShoreView Industries, has acquired Yardstick Management, a black-owned management consulting and executive search firm. Financial terms of the deal were not disclosed. As a part of this acquisition, Yardstick Management Institute, a specialized leadership program designed for leaders and senior executives, also becomes part of Diversified Search Group. “With this acquisition, we are continuing to advance Diversified Search Group’s purpose and decades-long commitment to investing in our clients’ long-term success as they respond to the evolving environment with a focus on innovation, resiliency, and growth,” said Aileen K. Alexander, chief executive officer of Diversified Search Group. “Yardstick offers unmatched expertise and scalable, actionable solutions to clients who are looking to create more inclusive cultures and achieve higher levels of engagement and performance.” Headquartered in Atlanta, Yardstick Management brings extensive expertise in management consulting and data-driven business solutions. Yardstick’s team has a track record of providing organizational strategy, diversity, equity, inclusion consulting and solutions, and executive search expertise to organizations across multiple industries. Their clients span hundreds of companies, non-profit and social impact organizations, and higher education institutions. The firm was founded in 2012. “We are fortunate to have Ebbie and his distinguished team join Diversified Search Group,” said Judith von Seldeneck, founder and chair of Diversified Search Group. “This acquisition marks an exciting next step on our strategic growth trajectory and builds on our foundation and track record of broadening the ranks. We look forward to joining forces and continuing to help our clients meet their business priorities of today, while preparing for the demands of the future.”
Related: The Current State of Executive Recruiting
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Executive Editor; Lily Fauver, Senior Editor – Hunt Scanlon Media
