Bow River Capital’s Software Growth Equity team has completed a strategic recapitalization of HRSoft, a cloud-based compensation management software provider, to Gryphon Investors. The transaction marks the first major liquidity event in Bow River’s 2023 vintage SGE Fund II.
Denver-based Bow River Capital initially acquired a majority stake in HRSoft in the third quarter of 2022. Over a hold period of more than three years, the firm helped scale the business significantly, driving approximately 350% growth. During that time, HRSoft expanded its global footprint, strengthened its operational infrastructure, introduced new AI-driven and industry-verticalized product innovations, and secured numerous Global 500 companies as customers.
As part of the value creation strategy, Bow River supported the hiring of CEO Joe Poxson and other key leaders to guide the company’s global expansion. HRSoft, founded more than 20 years ago and headquartered in Denver, provides enterprises with software to design, manage, and optimize complex compensation programs, including merit, bonus, equity, and carried interest plans.
Following the recapitalization, Bow River will roll a meaningful investment back into HRSoft and maintain board representation. The newly formed board of directors will include Maitlan Cramer, managing director with Bow River’s Software Growth Equity team. D.A. Davidson served as investment banker on the transaction, and Holland & Hart LLP acted as legal counsel to HRSoft.
Gryphon Investors, a middle-market private investment firm with more than $10 billion in assets under management, focuses on growth-oriented investments across business services, consumer, healthcare, industrial growth, software, and technology solutions and services sectors. Its integrated deal and operations model includes a dedicated Operations Resources Group of senior operating executives.
KEY QUOTES
“We initially discovered HRSoft in 2019, and during our 3+ year hold period, we helped build and scale this cloud-based SaaS firm into the dominant, global compensation management market leader. We are looking forward to our partnership with Jon Cheek and his operational partners at Gryphon Investors, whom we have developed an outstanding relationship with over many years, and are looking forward to an extraordinary next chapter of growth with Joe Poxson and the HRSoft team.”
John Raeder, Partner And Head Of Software Investments For Bow River Capital
“HRSoft’s market-leading cloud platform underpins an innovative complex compensation system designed to address ever-changing compensation models, legislation, and compliance requirements globally. We want to profusely thank our Board of Directors – John Raeder, Maitlan Cramer, Sean O’Connell, and Dave Walters – for a highly productive and successful partnership. We look forward to joining forces with Gryphon Investors and building upon our robust momentum.”
Joe Poxson, CEO Of HRSoft
“HRSoft has established itself as a trusted partner to enterprises navigating increasingly complex compensation environments. HRSoft’s flexible, low-code architecture, deep domain expertise, and strong customer relationships position the Company exceptionally well to address these evolving demands. We have rolled a meaningful investment back into HRSoft, and are excited to partner with the Gryphon team to further accelerate product innovation, scale go-to-market capabilities, and support the Company’s global strategy.”
Maitlan Cramer, Managing Director At Bow River Capital
