TPG Growth, the middle market and growth equity investment platform of TPG, has closed its acquisition of Frank Recruitment Group (FRG), a global staffing and recruiting business focused exclusively on the enterprise software market.
TPG Growth acquired a majority stake in FRG from its founders and UK-based mid-market private equity firm Livingbridge. Livingbridge invested in the Company in 2013 to help it continue to diversify and expand globally.
“We are immensely proud to partner with TPG Growth. They have a history of anticipating trends in technology and investing in some of the most innovative and transformative companies in the world,” says James Lloyd-Townshend, CEO of FRG. “Their leadership and foresight in the space will be crucial as we target new segments of the cloud technology market, launch new brands, strengthen our existing ones, and grow from a 700- to 2,000-person recruitment business.”
FRG is a leading niche recruitment firm for IT professionals who specialise in enterprise software. The Company has built a unique service model that divides its business into units, or “brands,” that are each dedicated to a single technology product. In 2007, FRG launched its original brand, Nigel Frank, to focus solely on recruiting Microsoft Dynamics IT professionals. Shortly thereafter, FRG launched its second core brand, Mason Frank, to deliver qualified Salesforce professionals to Salesforce channel partners and customers.
“In less than 10 years, Frank Recruitment Group has been able to successfully establish itself in several markets and become the go-to global provider for talent in the cloud technology field,” says Ransom Langford, Partner at TPG Growth. “Its niche focus and impressive growth have given the Company unparalleled expertise and insights into the industry’s personnel needs that are unique and highly sought after.”
In 2014, the Company launched two additional high-growth brands: Churchill Frank, which focuses on big data, and Washington Frank, FRG’s incubator brand, which specializes in staffing opportunities in emerging cloud technologies.
“FRG is a people-centric business,” says Co-Founder and CFO Nigel O’Donoghue. “We provide our employees with world-class training, fast-track career progression, and financial opportunities through employee ownership.”
“As leading investors in technology, we’ve witnessed firsthand the significant need for IT professionals who have a deep understanding of enterprise software. Businesses are aware of this need, but getting the right talent has proven to be difficult,” says Shamik Patel, Principal at TPG Growth. “FRG bridges this gap globally, in a highly specialised and strategic way. It’s the best-in-class solution.”
Co-Founder Sean Wadsworth, who is moving into a non-executive position but will continue to serve on the Board, commented, “When Nigel and I launched FRG in 2007, we set out on a 10-year plan to build a global recruitment business. Today has been another milestone in that journey, and I’d like to thank all the staff who worked so hard to get us to this point.”
Xavier Woodward at Livingbridge says, “Since our investment, FRG has continued its global expansion – launching two new high-growth brands in Churchill Frank and Washington Frank as well as significantly growing revenue, profit, and headcount. We have thoroughly enjoyed helping the business develop and look forward to watching its continued progress.”
Kirkland & Ellis International LLP acted as a legal advisor to TPG Growth in the transaction and HSBC provided debt financing. Travers Smith and Ward Hadaway acted as legal advisors to FRG in the transaction and Rothschild provided sell-side advisory services.
