Gryphon Investors announced it has completed a majority investment in HRSoft, a provider of enterprise compensation management software designed to help organizations manage complex pay programs. Existing investor Bow River Capital will retain a minority stake in the company, while the current executive team, led by CEO Joe Poxson, will continue to manage the business.
Headquartered in Denver, HRSoft provides a purpose-built, low-code compensation management platform that enables enterprises to administer complex compensation structures, including merit increases, bonuses, long-term incentives, variable pay, and carried interest programs. The platform integrates with major human resources information systems, such as UKG and Workday, and enables organizations to manage compensation structures, workflows, and reporting requirements with greater control and auditability.
The investment comes as demand grows for modern compensation management systems that can support global organizations managing increasingly complex pay structures. Many enterprises still rely on manual workflows, which can create operational risk and reduce visibility into compensation planning and governance.
With Gryphon’s backing, HRSoft plans to accelerate product innovation and expand its vertical capabilities, particularly within financial services. The company also intends to build additional go-to-market infrastructure to support continued growth.
A key focus of the company’s product roadmap will be expanding artificial intelligence capabilities on its platform. These enhancements are expected to improve configuration, plan design, and advanced modeling tools, reducing implementation time and providing stronger decision support for compensation programs.
Gryphon Investors is a San Francisco-based middle-market private investment firm with more than $10 billion in assets under management. The firm focuses on growing companies across sectors, including software, technology services, healthcare, consumer, and industrial growth.
Bow River Capital, which previously invested in HRSoft, will remain involved as a minority shareholder. The Denver-based alternative asset firm invests across private equity, private credit, and real estate strategies.
Advisors on the transaction included D.A. Davidson as financial advisor to HRSoft and Holland & Hart as legal advisor to the company. Gibson Dunn served as legal advisor to Gryphon, while Piper Sandler acted as financial advisor to Gryphon.
KEY QUOTES:
“We built HRSoft to bring structure, flexibility, and accountability to enterprise compensation. As organizations scale globally and compensation programs grow increasingly complex, that mission becomes even more critical. Gryphon’s partnership gives us the resources and expertise to accelerate innovation, expand our vertical capabilities, and scale our go-to-market efforts while staying grounded in the disciplined approach that has defined us from the beginning.”
Joe Poxson, Chief Executive Officer of HRSoft
“Compensation management requires both flexibility and control. HRSoft has built a strong foundation designed around structured workflows and auditability. We see opportunity to build on that foundation through continued innovation, including practical AI-enabled capabilities that improve insight and efficiency without compromising accountability.”
Jon Cheek, Partner and Co-Head of Gryphon’s Software Group
“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 are excited to partner with the Gryphon team to further accelerate product innovation, scale go-to-market capabilities, and support the Company’s next phase of growth.”
Maitlan Cramer, Managing Director at Bow River Capital
