ZRG Secures $120 Million in Funding

ZRG closes significant debt financing from Main Street Capital to enhance its ability to deliver innovative talent solutions to clients worldwide. Let’s go inside the latest round of financing and see how ZRG plans to continue to growth trajectory.

June 19, 2024 – ZRG, a global talent advisory firm and portfolio company of RFE Investment Partners, has secured $120 million in debt financing from Main Street Capital Corporation and its affiliates. “This significant funding will bolster ZRG’s growth initiatives and enhance its ability to deliver innovative talent solutions to clients worldwide,” the firm said. “It is a great time to acquire niche talent advisory and management businesses and build out our capabilities across executive search, interim, RPO, and consulting,” said Larry Hartmann, CEO of ZRG. “This additional financing from Main Street Capital, combined with our recent equity raise with a consortium of investors, positions us strongly to achieve our strategic objectives.”

“This latest round of financing will play a crucial role in supporting ZRG’s ongoing growth strategy,” said Scott A. Scanlon, CEO of Hunt Scanlon Ventures. He said the company plans to leverage the capital to continue acquiring high-quality businesses that complement its existing capabilities and continue to hire top talent to drive further growth. “Given the difficult environment we are in, this is an impressive achievement and a testament to the strength of ZRG’s platform,” said Mr. Scanlon.

This latest round of financing will play a crucial role in supporting ZRG’s ongoing growth strategy. The firm plans to use the capital to continue acquiring high-quality businesses that complement its existing capabilities and continue to hire senior talent to drive further growth.

The $120 million debt financing follows closely on the heels of ZRG’s recent equity raise managed by RFE Investment Partners, ZRG’s primary financial sponsor, further solidifying the firm’s financial foundation and capacity for expansion.

“We are excited to partner with Main Street Capital, as this strategic debt refinancing will provide ZRG with greater financial flexibility and a strong balance sheet, while serving as the catalyst to execute on the company’s long-term growth plan,” said Ron Ahuja, principal of RFE Investment Partners.

“We are impressed with ZRG’s data driven and tech-enabled approach to candidate placement and are excited to support the business and RFE as they execute on their M&A strategy,” said John Watson, director at Main Street Capital.

ZRG was advised on the debt financing by Capstone Partners. “ZRG and RFE are both highly relationship-oriented in their approach and prioritized finding the right relationship fit with its new lender; we were very pleased to have earned their trust to advise them on this important financing and next chapter in their growth story,” said Brad Stewart, managing director in Capstone’s debt advisory group.


Inside The Deal: CEO Larry Hartmann Opens Up On ZRG’s Latest Strategic Acquisition

Larry Hartmann is a seasoned veteran of the people business. As the chief executive of ZRG, he leads one of the fastest growing, global talent management hubs in the human capital sector. It wasn’t always this way. Larry founded ZRG 24 years ago on the core principle of building a better recruiting platform. Simple enough. Today, that vision has extended to a $230 million data-driven suite of talent and consulting offerings, including culture transformation, leadership assessment, executive coaching, strategic communications, RPO, and interim solutions. 


ZRG, founded in 1999, is a mid-sized global executive search firm and one of the fastest growing in the search industry. It provides a full suite of executive, middle management, and customized search solutions through its offices in North America, Europe, South America, and Asia. The firm finds leaders across a broad spectrum of business markets, including aerospace, consumer, education, healthcare services, and solutions, industrial, life sciences, non-profit, private equity and venture capital, and technology. ZRG is based in Rochelle Park, NJ.

Recent Acquisitions

ZRG diversified its talent management offerings over the past year. In March, the firm acquired Wiser Partners, a retained executive search firm headquartered in Cincinnati, OH, with offices across the U.S. “By welcoming Wiser Partners, ZRG gains valuable experience in working with marketing, sales, and analytics senior executives at Fortune 100 consumer packaged goods companies, PE-owned, VC-backed, and family-owned firms,” said Mr. Hartmann. “Adding Wiser Partners to the family of ZRG companies helps take us to another, higher level in our functional expertise in this area.”

Founded nearly 30 years ago, Wiser Partners’ searches are focused on functional roles in marketing leadership and in go to market positions across industries with a strong track record in the consumer markets. Since 1994, Wiser Partners focuses more on functional expertise versus industry specialization. The firm’s clients range from Fortune 100 corporations to private equity-owned, VC-backed, and family-held companies. Wiser has offices in Cincinnati, OH, Columbia, SC, New York, Stamford, CT, Sacramento, CA, Austin, TX, Minneapolis, MN, Raleigh ,NC, Charlotte, NC, and Naples, FL.

Also this past spring, ZRG acquired Ignata Finance Group, a U.K.-based executive search & finance recruitment and interim placement business. “Partnering with Ignata will enable our European growth strategy both in private equity but across our shared global customers, especially in the U.K.,” said Mr. Hartmann. “Adding Ignata to the family of ZRG companies puts us another step closer to true global talent advisory.”

Related: Will the Surging M&A Market for Executive Search Firms Continue?

Founded in 2017, Ignata partners with VC, PE, and listed organizations seeking chief financial officers and their teams. “We continue our commitment to build a world-class business, employing passionate consultants that are experts in their fields. The partnership with ZRG marks a pivotal moment in our global expansion,” said Ben Searls, founder of Ignata. “By joining forces with ZRG, we are not only enhancing our C-suite capabilities but also broadening our reach internationally.”


ZRG Partners’ Swift and Strategic Road to Expansion

Larry Hartmann is a seasoned veteran of the people business. As the chief executive of ZRG, he leads one of the fastest growing, global talent management hubs in the human capital sector. It wasn’t always this way. Mr. Hartmann founded ZRG 24 years ago on the core principle of building a better recruiting platform. Simple enough. Today, that vision has extended to a $230 million data-driven suite of talent and consulting offerings, including culture transformation, leadership assessment, executive coaching, strategic communications, RPO, and interim solutions. The firm is a perennial leader in Hunt Scanlon Media’s Top 10 rankings.

ZRG’s expansion effort, according to rivals, has been swift and strategic. Less than a year ago, ZRG secured a secondary equity investment from a consortium of new and existing institutional investors led by Timber Bay Partners. It has used that capital and an expanded credit facility to continue an acquisition journey that has produced 11 deals over the past four years.


ZRG also acquired The Registry, a Peabody, MA-based interim executive solutions firm specializing in higher education. “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 Mr. Hartmann. “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. In 2002, Dr. Carlson and Mr. Matthews founded Collegiate Enterprise Solutions (CES) LLC, at which time they acquired The Registry for College and University Presidents. Since that time, Dr. Carlson has served as president of The Registry. Under the leadership of Dr. Carlson and Mr. Matthews as chancellor, The Registry has experienced sustained growth and expansion. Today, with a membership of 1,000-plus, The Registry continues to be a top firm in the interim executive space in higher education.

Related: ZRG Acquires Walking the Talk

Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor  – Hunt Scanlon Media

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