Private equity firm Renovus acquires KSM Consulting
Management and technology advisory firm KSM Consulting has been acquired by Renovus Capital Partners.
Indianapolis-based KSM Consulting (KSMC) has seen massive growth over the past five years, increasing in size by 500% and achieving 50% growth in 2018 alone. The firm has seen consistently growing demand for its services in the areas of IT consulting and support, cybersecurity, data analytics, project management, and business strategy.
Founded in 2008, KSMC has two locations in Indianapolis, and has supported more than 300 public and private sector clients throughout the US, including the State of Indiana and Flaherty & Collins Properties. The consulting firm is an offshoot of Indianapolis accounting firm Katz, Sapper & Miller.
The firm’s stellar growth attracted the attention of private equity firm Renovus Capital Partners, which has now acquired a majority interest in KSMC. Katz, Sapper & Miller will retain a minority ownership stake in KSMC and a seat on the board of directors.
Based outside of Philadelphia, Renovus invests in education, training, human capital, and technology services firms. The private equity firm has acquired 22 portfolio companies since 2010, and manages more than $500 million of committed capital.
“We feel very fortunate to have found an Indianapolis company with such a history of success and great potential for growth,” Atif Gilani, Renovus founding partner, said. “We look forward to investing in KSMC’s leadership team and employees to grow the Company’s influence in Indiana and beyond.”
As part of the deal, KSMC president Mark Caswell will take on the role chief executive officer. “I speak on behalf of the entire KSMC team when I say that we owe much of our success over the last 10 years to our incredible clients and partners,” Caswell said. “We are excited to expand our Indianapolis headquarters and invest in the Indianapolis community in big ways as we begin a new chapter.”
Private equity acquisitions of high-performance consultancies are usually followed up with capital infusions to scale up operations – through hiring or M&A – to achieve greater returns. In KSMC’s case, the firm will look to immediately hire up to 30 data analysts, consultants, and project managers at its Indianapolis headquarters.
“KSMC’s growth over the last 10 years is something we’re proud to be a part of,” David Resnick, managing partner of Katz, Sapper & Miller, said. “The benefits and growth that this opportunity affords will allow KSM and KSMC to continue pursuing success together.”
