- Under BC Partners’ ownership, NAVEX has grown into the global leader in governance, risk and compliance software
- BC Partners to maintain a significant minority stake post-sale, demonstrating long-term conviction in NAVEX’s growth prospects
- Transaction maintains BC Partners’ momentum in exits, generating c.€16bn in monetizations over the past 24 months
BC Partners, a leading international investment firm, today announced an agreement with a consortium led by Goldman Sachs Alternatives, including funds managed by Blackstone’s private equity strategy for individual investors (“Blackstone”), for the sale of a majority stake in NAVEX (the “Company”), a leading global ethics, risk and compliance management software-as-a-service provider. Under the terms of the agreement, the Private Equity business at Goldman Sachs Alternatives will take a majority shareholding in the firm. Blackstone will also become a significant minority shareholder. Funds managed by BC Partners will retain a significant minority shareholding to support NAVEX’s future growth, demonstrating conviction in the business’s continued success. Vista Equity Partners (“Vista”), an existing minority investor, will fully exit its investment in the company. Terms of the transaction were not disclosed.
BC Partners acquired its majority stake in NAVEX in 2018 in a bilateral transaction, having positioned itself as the partner of choice to the company and existing investor Vista. Leveraging its significant technology sector expertise and owner-operator approach, BC Partners, alongside management, drove significant organic growth and expanded NAVEX’s product capabilities, customer base, and global footprint, becoming the global leader in ethics, risk and compliance management SaaS.
F. Mark Fariborz, Partner and Co-Head, Technology at BC Partners, said “Today, NAVEX is the global leader in ethics, risk and compliance management software, and we are proud of the success we’ve achieved in partnership with management. Together, we launched NAVEX One, the industry’s leading integrated risk and compliance platform, expanded across Europe and North America, and executed several strategic acquisitions. We look forward to partnering with Goldman Sachs Alternatives and Blackstone to support the business in its next phase of growth”.
Michael Fosnaugh, Co-Head of Vista’s Flagship Fund and Senior Managing Director said, “NAVEX has grown into a premier digital compliance platform that helps thousands of organizations around the world confidently manage complex risks. We are proud to have partnered with them to reach this milestone and wish them continued success moving forward.”
Andrew Bates, CEO of NAVEX, added “BC Partners has been an exceptional partner, helping us scale our platform, grow internationally, and expand our product capabilities. We are excited to join forces with Goldman Sachs Alternatives and Blackstone, whose reach and sector expertise will be invaluable as we continue to innovate and serve risk and compliance departments globally.”
Harsh Nanda, Partner and Head of Technology Private Equity within Goldman Sachs Alternatives, said “Goldman Sachs Alternatives is excited to enter into this new partnership with NAVEX. We would also like to thank BC Partners and Vista for their great stewardship over the past several years and we look forward to working closely with Blackstone and BC Partners in the Company’s next chapter ahead.”
Joon Park, Managing Director at Goldman Sachs Alternatives, said “NAVEX’s exceptional brand strength, global leadership position in its key offerings, and impressive customer base make it well-positioned for continued success and value creation. With support from Goldman Sachs’ global network and the Value Accelerator, together with Blackstone and BC Partners’ extensive track record and experience, we believe NAVEX will be able to bolster its position as the global leader in ethics, risk and compliance management software.”
David Schwartz, a Senior Managing Director at Blackstone, said “NAVEX has established itself as a global leader in ethics, risk and compliance software solutions, empowering companies to build stronger and more resilient organizations. We are thrilled to partner with Goldman Sachs Alternatives and BC Partners and management to support NAVEX’s continued innovation and long-term growth.”
With this transaction, BC Partners has delivered c.€16bn in monetizations over the past 24 months, demonstrating the high quality of businesses and exit optionality which underpin BC Partners’ portfolio and position in the market.
NAVEX was advised by J.P. Morgan and Simpson Thacher & Bartlett LLP. Goldman Sachs Alternatives was advised by Weil, Gotshal & Manges.
The transaction, subject to customary closing conditions, is expected to close later this year.
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About BC Partners
BC Partners is a leading investment firm with circa €40 billion in assets under management across private equity, private debt, and real estate strategies. Established in 1986, BC Partners has played an active role for nearly four decades in developing the European buyout market. Today BC Partners’ integrated transatlantic investment teams work from offices in Europe and North America and are aligned across our four core sectors: TMT, Healthcare, Services & Industrials, and Food. Since its foundation, BC Partners has completed over 130 private equity investments and is currently investing its eleventh private equity buyout fund.
For further information, please visit https://www.bcpartners.com/
About NAVEX
Trusted by over 13,000 organizations, including 75% of Fortune 100 and 500 companies, NAVEX is the global leader in risk and compliance solutions. Its NAVEX One platform strengthens risk and compliance programs, empowering organizations with unparalleled industry benchmark data and insights. NAVEX One provides a 360-degree view of enterprise, third party and ecosystem risk for enhanced regulatory compliance and proactive risk management. Based in Lake Oswego, OR, with a global presence, NAVEX continues to shape the future of governance, risk and compliance.
