LightBay Capital Makes Strategic Investment in Questco, a National Leader in Outsourced HR Services
31 Julio 2024 - 10:00AM
Questco (the “Company”), a leading professional employer
organization (“PEO”) specializing in outsourced human resource
solutions, announced today that it has partnered with LightBay
Capital (“LightBay”), a Los Angeles-based, growth-focused private
equity firm. Questco’s partnership with LightBay will allow it to
further grow its direct sales efforts and channel partner
relationships, pursue attractive acquisition opportunities, and
make continued investments in technology.
Dedicated to serving the small to mid-sized
business community, Questco offers a range of high-value,
cost-effective HR services, including outsourced payroll, tax
administration, healthcare benefits, and workers’ compensation to
over 1,200 employers in all 50 states. The Company’s metric-driven
focus on exceptional service has resulted in industry-leading
customer retention and NPS scores, and a sustained track record of
organic growth. Founded in 1989, Questco is headquartered in metro
Houston, and has completed five acquisitions with service centers
in Omaha, Colorado Springs, Greenville, Phoenix, and Dallas.
“We are thrilled to be partnering with the
LightBay team. Questco has built a phenomenal organization that
proudly supports small businesses and the people that enable their
success,” said Jason Randall, CEO of Questco. “LightBay’s
people-first approach matches perfectly with Questco’s culture, and
its experience investing behind and scaling industry leaders aligns
well with our plans for accelerated growth. Our team is energized
to draw on this experience to grow, add capabilities, and find new
ways to assist and delight our clients. I’d like to thank
Parallel49 Equity for their partnership and support in helping to
position Questco for this meaningful milestone.”
“Questco has all the hallmarks of a successful
LightBay partnership”, said Adam Stein, Partner and Co-Founder at
LightBay. “We are drawn to its high-quality people, long-standing
client relationships, exceptional levels of service, and multiple
opportunities for growth. The PEO industry supports the small and
medium-sized business community, and we are proud to be part of a
solution that allows those owners to provide enhanced access to
benefits, technology, and services for their team members. We are
excited to partner with Jason and his team.”
“LightBay’s investment in Questco is the result
of our continued focus and bullish thesis around white- collar
business-to-business services”, said David Leeney, Partner at
LightBay. “Workforce redesign, the evolving landscape of how
employers engage and retain talent, rising benefit costs, and
increased regulatory complexity make tech-enabled human capital
solutions providers like Questco more integral than ever before. We
are proud to invest in another exceptional team to help them drive
enduring growth.”
Lazard served as the financial advisor and DLA
Piper LLP provided legal counsel to Questco and Parallel49 Equity
in connection with the transaction. Piper Sandler served as the
financial advisor and Kirkland & Ellis LLP provided legal
counsel to LightBay.
About QuestcoQuestco is a
premier Certified Professional Employer Organization (CPEO) that
provides outsourced human resource solutions, enabling its small
and medium-sized business clients to contain costs, relieve
administrative burden, and enhance the employee experience.
Established in 1989, the organization is headquartered in metro
Houston, Texas, with additional service centers in Omaha, Nebraska,
Colorado Springs, Colorado, Greenville, South Carolina, Phoenix,
Arizona, and Dallas, Texas. Questco's clients enjoy a comprehensive
set of offerings, including access to large group medical benefits
and group workers' compensation insurance, expert HR advice, access
to user-friendly HR technology, payroll, tax and benefits
administration, employee liability and risk management programs,
and 401(k) programs. For more information, please visit
questco.net.
About LightBay Capital LightBay
Capital is a Los Angeles-based private equity firm that invests in
high-quality companies to accelerate growth. Primarily focused on
the business services, healthcare, and consumer industries, the
LightBay Capital team has been partnering with innovative
service-based companies collectively for over twenty years.
LightBay Capital was founded in 2017 and is currently investing out
of its second fund. For more information, please visit
www.lightbay.com. To discuss investment opportunities, please
contact David Leeney at dleeney@lightbay.com.
Media ContactStella HoLightBay
Capitalstella@lightbay.com