Enterprise software continues to be one of the hottest sectors due to the returns generated for investors year in and year out. Those returns in large part are driven by excellent company performance as well as future growth potential. While one can easily access software investment opportunities in the public market, there exist valuable gems in the private market where one can uncover diamonds at compelling valuations.
Recently, it was announced that the private equity arm of storied hedge fund Elliott Management Corp would invest in Workforce Software. This discrete private equity operation known as Evergreen Coast Capital Corp will become equal partners with existing investor Insight Partners, which has been a majority investor in the company since 2014.
Elliott Management was founded in 1977 and manages in aggregate $34 billion of assets. The large majority of its investments focus on public securities. Its investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm.
WorkForce Software was a compelling opportunity because of the company’s ability to enable corporations of all sizes to manage disparate workforces under one software platform. In addition, its solutions are end-to-end streamlining time and attendance processes, employee scheduling, absence management, and strategic business insights. Moreover, the platform’s flexibility made it ideal for use by global organizations.
Evergreen’s Managing Director Isaac Kim commented on the transaction, “We are pleased to be investing in WorkForce Software alongside Insight Partners,” further adding, “As the only proven cloud vendor in the workforce management space, WorkForce Software’s solutions equip global organisations to manage complex pay and compliance policies while boosting employee engagement and productivity. With an increasing number of companies looking to enhance efficiency by embracing digital transformation, we see this investment as a strategic addition to Evergreen’s technology portfolio.”
WorkForce Software CEO Mike Morini expressed his enthusiasm for Evergreen, “We are excited to partner with Evergreen and accelerate the value we deliver to companies around the globe,” he continues, “Evergreen’s significant strategic investment will help us expand our international footprint and enable WorkForce Software to double down on what we do best: enabling happy customers to move beyond proprietary clocks and dated, legacy vendors with innovative solutions for managing today’s increasingly complex, global workforce.”
While the next phase of company growth won’t be without its challenges, the investment gives Elliott Management an opportunity to participate in the private software market. And with a talented co-investor like Insight Partners by its side, the odds are in their favor for strong returns not too far down the road.