Houlihan Lokey Advises The Execu|Search Group

Houlihan Lokey is pleased to announce that The Execu|Search Group (TESG) has received a significant growth investment from Mill Rock Capital. In connection with the transaction, New Heritage Capital (Heritage) exited its investment in the company. The transaction closed on March 29, 2021.

Founded in 1985 and headquartered in New York City, The Execu|Search Group is a leading direct hire recruitment, contract staffing, and workforce solutions firm with offices throughout the U.S. The company specializes in highly skilled positions across a variety of markets, including healthcare, technology, pharmaceutical, and professional services.

New Heritage Capital, founded in 2006, is a middle-market private equity firm that specializes in investing in founder- and entrepreneurial-owned businesses and primarily focuses on partnering with companies in the business services, healthcare, and manufacturing industries. Heritage worked closely with the TESG management team to execute a comprehensive strategic and operational growth plan, focusing the company on its core industry verticals, executing strategic add-on acquisitions, and supporting its executive management transition.

Edward Fleischman, former Executive Chairman of The Execu|Search Group, said, “As the founder of the company, I sought a partner that could provide both strategic and financial support while ensuring the legacy, brand, and culture built over 35 years lived on. Heritage was that partner.”

Mill Rock Capital is a growth and operations oriented private investment firm that invests in well-positioned North American middle-market businesses. Founded in 2018, Mill Rock Capital primarily invests in businesses across the services, chemicals, materials and packaging, industrial distribution, metals, transportation and logistics, and industrial technology and specialty manufacturing industries. Their team combines over 500 years of direct operating experience with traditional private equity experience to create value.

"This is an exciting development for TESG's clients and dedicated team members. We are eager to build upon our strong momentum and continue to grow as a leading specialty staffing firm," said TESG's Chief Executive Officer Larry Dolinko. "This transaction will facilitate the achievement of our growth objectives, continued geographic expansion, and enhancement of our service capabilities with new and existing clients," added President Kyle Mattice.

Houlihan Lokey served as the exclusive financial advisor to The Execu|Search Group and New Heritage Capital and assisted in the marketing, structuring, and negotiation of the transaction.

Houlihan Lokey’s Human Capital Management (HCM) team is among the most active M&A advisors in the market, having closed 11 transactions in the past 24 months. This most recent transaction further strengthens Houlihan Lokey’s leadership in the business services universe and highlights its continued momentum and leadership in the HCM sector, which includes staffing, recruitment, VMS, MSP, RPO, talent management, and PEO.

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