Investcorp buys majority stake in KSM Consulting

23 February 2021 3 min. read
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Investcorp, a Bahrain-based global manager of alternative investments, has acquired a majority stake in KSM Consulting, an Indianapolis-based provider of management and technology consulting services. Previous owner Renovus Capital Partners will retain a minority stake and will continue to sit on the board of directors.

Founded in 2008, KSM Consulting (KSMC) provides technology, data analytics, and management consulting services to public sector and private sector clients. Originally the consulting division of accountancy Katz, Sapper & Miller, Renovus Capital Partners acquired a majority stake in KSMC in 2019.

With private equity backing, KSMC embarked on an ambitious campaign of organic and inorganic growth in the following next two years. The company grew from fewer than 100 employees in Indianapolis to more than 300 nationwide, with new locations in Columbus, OH; Lansing, MI; and Denver, CO.

KSMC in 2019 bolted on Connect Think, an Indianapolis-based app development firm with eight professionals, followed by the addition of Advocate Solutions, a 28-person management and technology consulting firm specializing in the public sector.
Investcorp buys majority stake in KSM ConsultingTwo weeks ago KSMC acquired Tempus Nova, a Denver-based provider of Google Cloud solutions and implementation. The move added 25 professionals with deep expertise in Google app development, implementation, project management, and training.

All told, KSMC has in the last three years registered CAGR growth of more than 40%, pro forma for acquisitions.

This strong growth, along with the attractive market potential of technology-focused consulting, led Investcorp to buy a majority stake in KSMC. Financial terms were not disclosed.

Investcorp’s investment areas include corporations, real estate, hedge funds, and a credit management. The Bahrain-based firm has a long history of collaborating with technology-enabled professional services firms, among other verticals. Investcorp also recently invested in global consulting firm AlixPartners.

“The past year highlighted the importance of embracing technology for all organizations, regardless of size, sector or industry,” said Steve Miller, managing director and head of knowledge and professional services, private equity – North America at Investcorp. “We believe that KSM Consulting is well-positioned for growth as the need for organizations to adopt and realize value from digital solutions will continue to generate demand for the firm’s mission-critical services.”

KSMC is primed for continued growth under its new ownership, and plans to increase its workforce by at least another 20% in 2021. Mark Caswell, CEO, and John Roach, president, will continue to lead the consulting firm.

“Investcorp’s resources and expertise will enable us to continue expanding the reach of our difference-making work and will position us for accelerated growth as we continue to prioritize providing service excellence and driving positive outcomes to our clients,” Caswell added.