Carrick Capital Partners

Carrick Capital Partners | Invest More Than Capital Skip to content CARRICK CAPITAL PARTNERS provides an approach to building value and growth capital for companies like: Toggle navigation Close APPROACH TO BUILDING VALUE INVESTMENT APPROACH PORTFOLIO INSIGHTS THE TEAM CONNECT CARRICK CAPITAL PARTNERSprovides an approach to building value and growth capital for companies like: LaunchPoint provides proven, innovative cloud-based solutions, software, and services that improve the operations and financial performance of healthcare organizations. MORE ABOUT THIS COMPANY × CARRICK CAPITAL PARTNERS PROVIDES EXPERTISE AND GROWTH CAPITAL FOR COMPANIES LIKE: LaunchPoint provides cloud-based solutions, software, and services for healthcare organizations. Through our proprietary, cloud-based Healthcare Analytics Platform, LaunchPoint builds solutions that help healthcare clients manage payment integrity more nimbly, reduce cost and waste in their claims payment process, and derive insights from their data. LaunchPoints two divisions are Discovery Health Partners, a provider of payment integrity software and solutions for healthcare payers, and Ajilitee, a healthcare information and analytics consulting business. Headquartered in the suburbs of Chicago, we serve more than 40 healthcare clients including three of the largest health payers in the nation. In 2014 the company was named the 100th fastest growing privately held company on Inc. Magazines Inc. 500 list and #14 among healthcare firms. For additional information, please visit www.launchpointcorporation.com. Your client service is outstanding, you truly feel like a business partner, and you deliver strong results. You are a breath of fresh air amongst vendors. Senior Manager of Business Operations Top Five Health Plan INTERVIEW LEADERSHIP Q A WITH FOUNDER AND CHAIRMAN TERRENCE RYAN Can you explain exactly what your company does, what problem it solves, and how it differs from competitors? We operate a set of businesses that provide information-driven software and solutions for healthcare organizations. Our two divisions are Discovery Health Partners, a provider of payment integrity and risk management software and solutions, and Ajilitee, a healthcare information and analytics consulting business. We offer a unique combination of deep healthcare expertise and powerful technology solutions to help health plans and other healthcare organizations improve operational efficiency, achieve financial integrity, and generate measurable results. These complementary businesses help our clients manage payment integrity and member risk more nimbly, reduce cost and waste in their administrative processes, and increase revenue. We saw a host of big challenges forcing healthcare organizations to be more accountable and to work faster and smarter to reduce unnecessary cost and waste. We estimate that 3-7% of paid health claims contain errors. In our $2.9 trillion healthcare marketplace, this represents a staggering amount of waste and inefficiency. We knew LaunchPoint could tackle this major industry problem head-on by addressing the quality of the claim payment transaction occurring between the payer and the provider, what is known as claim payment integrity. Recovering mispaid claim amounts flows straight to the bottom line, with significantly more than that realized in future cost avoidance and premium restoration. In most cases we have uncovered 30%-40% better results than our customers former providers. In extreme cases our results have been a 3,000% improvement. We used to think tech enablement was our big differentiator, but the bottom line for customers is getting better results for their business. How did LaunchPoint get started? Many members of our executive team, myself included, spent their careers building companies focused on data analytics. When we came together to form LaunchPoint in 2008, sweeping change for healthcare was dominating the news. We focused on payment integrity as an area that had been neglected and one that had huge potential to impact the financial health of our health plan prospects. Payment integrity solutions involve very complex data. That is our sweet spot and a problem we know how to solve. While we were building the solution the cloud was emerging as the next wave, so we built the company on a 100% cloud-based solution set. We knew we had planted ourselves firmly at the intersection of two significant transformations the intersection of health care reform and cloud-based technologies. Our hypothesis has been proven as our client base has grown to nearly 50 plans, including three of the top five insurers. Tell me about your team and your business philosophy? In putting together the team I gathered old co-workers and brought in new talent. I believe in a ratio of about 75% former colleagues with a known track-record and 25% new people with new and complementary experiences. My philosophy is that to succeed, a business needs a vision and effective execution. You have to have vision to know where you are going, why you are different, and what problem you are going to solve. But lots of people have vision. Having the ability to also implement and execute against that vision is what makes a successful business. The team we assembled is known for doing both. What are some of the speci­fic challenges youve faced as the company has grown and how have you successfully addressed them? There are three primary challenges that come to mind. The first is managing expectations and keeping everyone aligned. A lot of people who have done great things over their careers are involved in influencing a business; employees, investors, board members, etc. The CEO has to keep all of their expectations in line while keeping everyone marching in step toward the same goal. The power, whether you are the CEO of a $100M business or a start-up, is in getting everyone to pull in the same direction. The second challenge is being able to surround yourself with people you know you can depend on, who have experience, expertise, and aptitude. These are people who can elevate the organization because they have competencies different than, and sometimes superior to, yours. The third critical challenge is preserving quality and customer service as the company grows. A company changes dramatically as it moves from a $3-$5M to $20-$30M, and if you arent diligently working to maintain the quality of your product and customer service, it will likely slip. You have to proactively invest in customer facing initiatives and customer advocacy. Stay away from anything that bogs you down and makes you look like every other company. In the eyes of your customers you must always appear to be the young, nimble, responsive company, no matter how big you may become. Tell us about your decision to bring in an equity partner? In the summer of 2014, one of our largest customers handed us an extra $31M in contracts. They were a top three health insurer that had decided they were going to give us business formerly handled by our competitors. This event made us realize two things: 1) this could, and hopefully would, happen again with other customers, and 2) we needed to put the right capital in place to grow faster and take advantage of these opportunities. Carrick was our first institutional investment. We needed to find a capital partner and had developed a list of seven criteria, only one of which had anything to do with capital. Im approached daily (including weekends) by potential investors so we needed a methodology to narrow the possible universe. Carrick called us at the perfect moment, met every criteria, and absolutely mapped to our business proposition. We didnt want just money. We wanted someone who understood our business and would bring their expertise to the table to work with us. What are the benefits of working with a group like Carrick Capital Partners and what are the lessons you have learned from the relationship? The Carrick team has influenced many areas of our organization. Their individual experience and the collective best practices from their other portfolio companies have been extremely useful. When we have a problem, we often call Carrick for their input and to learn what their other companies have done in similar situations. Leveraging Carricks example and suggestions, we have reformatted our board and executive meetings to include more forward-thinking discussions. This has facilitated a much more productive dialogue around meaty topics and the bigger, hairier issues that bubble up during meetings. Instead of taking time to present, we skip ahead to addressing questions and suggestions. Everyone has already reviewed the material so we can focus on what they think, which is especially interesting when three of the five board members gravitate to the same unexpected topic or issue. Whats your advice for other businesses considering private equity? The first thing I would say is dont hesitate to spend time with a Carrick-like company even though you may be too early for them. The number of potential investors is overwhelming and you need to figure out which one fits. Before you meet, go read their website and ask yourself how much it aligns with your company this really matters. For us every criteria matched both online and when we spoke. Then, when you are meeting with these companies, verify that their strategy and investment philosophy aligns with your company vision. What are you most excited about at LaunchPoint and whats next? What is really exciting to me and the team is that the healthcare industry continues to evolve and we keep bringing more products to market more quickly. We are at the intersection of healthcare, data centric analytics, and SaaS architecture in the payment integrity space. What makes this even more exciting is that our model has been validated by people who evaluate businesses for a living. The fact that they believe we can take it to the next level, is a great vote of confidence, and an entirely new level of credentialing. Since we concluded our capital raise, we have funding and a great partner at the board table we have everything we need to further build the team, expand the customer base and bring new products to market. Its incredible to be in this position and have all of this opportunity. Its almost as exciting as first creating the business. Bay Dynamics® is a cyber risk analytics company that enables enterprises to measure, communicate and reduce cyber risk. MORE ABOUT THIS COMPANY × CARRICK CAPITAL PARTNERS PROVIDES EXPERTISE AND GROWTH CAPITAL FOR COMPANIES LIKE: Bay Dynamics® is a cyber risk analytics company that enables enterprises to measure, communicate and reduce cyber risk. The companys flagship analytics software, Risk Fabric®, automates the process of analyzing security information so that its traceable, trustworthy and prioritized. The platform makes cyber risk everyones business from employees to line-of-business application owners to the board and actively engages all parties in measurably reducing it. Bay Dynamics enables some of the worlds largest organizations to understand the state of their cyber security posture, including contextual awareness of what their insiders, vendors and bad actors are doing, which is key to effective cyber risk management. For more information, please visit www.baydynamics.com Infrascale helps companies of all sizes recover their data from a disaster quickly, easily and affordably, and have the peace of mind that comes from knowing their data is safe and available. MORE ABOUT THIS COMPANY × CARRICK CAPITAL PARTNERS PROVIDES EXPERTISE AND GROWTH CAPITAL FOR COMPANIES LIKE: Based in El Segundo, California, Infrascale is an entirely new approach to cloud backup and disaster recovery. Every modern company depends on data and operational uptime for survival, but unfortunately, most are vulnerable to data theft, application failures, and server downtime. Infrascale helps companies quickly and easily recover their data and restore their operations in the wake of a disaster. Infrascale protects servers (physical and virtual), applications, desktops, and mobile endpoints, across 100+ operating systems, delivering cloud-based data protection thats changing the way companies think about backup and disaster recovery. In fact, Infrascale was designated as a Gartner Cool Vendor for business continuity management and IT disaster recovery management for 2015. For additional information, please visit www.infrascale.com. INTERVIEW Leadership Q A with CEO Ken Shaw, Jr. Can you explain exactly what your company does and what problem it solves? Infrascale uses the cloud to protect data for businesses. We provide the industrys only total cloud platform for backup, disaster recovery, file sharing and data archiving with military-grade security. Our platform protects data in any environment and our solutions span mobile devices, workstations, and physical or virtual servers. You can think of it like iCloud backup for banks and government. Data protection is a critical part of computing that is often overlooked. The industry has been dominated by three companies that have lost their focus on innovation and customer service. As a young company, Infrascale has seized the opportunity to disrupt the industry by making data protection dramatically simpler and by offering a solution at a price point that makes it more accessible for companies to securely protect their business data, which is their lifeblood. How did Infrascale get started? The foundation for Infrascale started in Australia more than 10 years ago. Im an engineer by training and in college I built backup tools and utilities that became popular in Australia. In 2006, I formed a company, building out a product team and valuable products that I eventually brought to America. What are some of the specific challenges youve faced as the company has grown and how have you successfully addressed them? The challenges Ive faced track the normal life cycle of a company. The first challenge was building a product and putting together a great team that was capable of taking the product farther. I recognized that my own vision only went so far and that I needed others who could take the baton and run with it. Another challenge all startups face is fundraising. Fundraising for a young company can be a real bear and finding the right VC/PE is mission critical. Getting the wrong equity partner can be terrible. Getting the right one can be transformational. Ive had great early stage investors as the company grew up and Im grateful to have found Carrick now that were larger. They can really help us scale. They bring much more value to the table than just capital. Tell us about your decision to bring in an equity partner. The decision to bring in an equity partner was relatively simple. We wanted the capital to scale. The difficult decision was which equity partner. Ive always been deeply skeptical of investors who promise to provide added value. Everyone makes the same claim. No one ever says we are dumb money. Some claim to add value and actually do. But most make the claim and then disappear or claim to add value and actually decrease value by micromanaging, meddling and controlling. Carrick is in that rare category of equity partners that add tremendous value beyond capital. In what areas of the business did you feel you could use help or counsel? When I met Carrick I wanted to acquire another company, and I couldnt have done that without them. They really supported that strategy. I was lucky to find partners who would back my vision and the acquisition of a new company, particularly given that I had no acquisition experience. As it turns out, the acquisition has gone very well. It has been a transformational deal and it has made our future much brighter. What are the benefits of working with a group like Carrick Capital Partners? Our partnership with Carrick gives us access to a wide range of skill sets. Collectively, the partners bring to the table diverse and complementary business experience. To name a few, these include business-building acumen, operational expertise, unparalleled knowledge of technology- enabled service businesses, and in-depth understanding of legal, finance, capital structure, and governance matters. They also all have very powerful networks and know exactly who to bring to the table. They are no more than three steps removed from anyone Id ever need to contact. What has been the biggest change to the company as a result of working with a private equity partner? The acquisition has completely changed the trajectory of the company and we couldnt have done it without Carrick. Whats your advice for other growing businesses considering private equity? I have a beef with applying the term private equity to Carrick. Carrick provides growth equity. When most entrepreneurs think of private equity, they imagine predatory organizations and individuals who arent going to act like partners. In stark contrast, Carrick is willing to roll-up their sleeves and help. Forget everything you think you know about private equity. Carrick is different. They are not just a financial partner: they are a business partner. What are you most excited about at Infrascale and whats next? Im most excited about our immediate product roadmap. We are doing some really cutting edge work. We operate in a $3 billion market worldwide and our products are reshaping what is defined as a good enterprise backup and disaster recovery system. Knowing that what youre doing is having a real industry impact is exciting. Next is sales and marketing expansion. We have a product and a platform, but we needed to invest in the sales and marketing machine to scale. So thats what were doing. In three years I hope to have expanded internationally in a substantial way beyond North America into Europe and Asia. Accolade Inc. is an innovative consumer services company, dedicated to helping people get the right care the first time. MORE ABOUT THIS COMPANY × CARRICK CAPITAL PARTNERS PROVIDES EXPERTISE AND GROWTH CAPITAL FOR COMPANIES LIKE: Accolade Inc. is an innovative consumer services company, dedicated to helping people get the right care the first time. Our Accolade Health Assistants® take the time to get to know individuals, understanding the context of their healthcare decisions, building trust and influencing decisions as they navigate the complex healthcare system. By integrating leading technology, analytics and clinical decision support, were able to create personalized engagement and care plans for every client. This high-touch, high-tech approach consistently results in better savings, improved health outcomes, near-perfect client satisfaction ratings and Net Promoter Scores ranking among the worlds most respected brands. Founded in 2007 and headquartered in Plymouth Meeting, Pa., Accolade serves the families of some of the nations largest self-insured employers and payers. The company has been recognized as one of the nations 25 most promising companies by Forbes magazine, the fastest-growing private healthcare company by Inc. 500, and the No. 1 mid-sized company by Top Workplaces in Philadelphia. For additional information, please visit www.accolade.com. Accolade is delivering real value to Comcast in the form of more engaged and delighted employees and significantly lower healthcare costs. William Strahan Comcast Cable INTERVIEW LEADERSHIP Q A WITH CEO RAJEEV SINGH What attracted you to Accolade? At first, it was their mission. Accolade is a unique concierge healthcare company that helps people get the right care the first time. With a mission focused on helping improve health for millions of people, I couldnt think of anything nobler. Frequently, when people need healthcare assistance, they are in a state of anxiety and vulnerability; theyre confused by the process, anxious about their situation or concerned for themselves or family members. To have the opportunity to help people at these difficult times in their lives is incredibly gratifying. Accolade had an impressive foundation of experience and success, and was looking for a catalyst to elevate the company to its next level of growth. Technology will play a big part in that growth strategy. The healthcare space is one where the pace of innovation has accelerated almost exponentially, and if you are not constantly innovating, you run the risk of obsolescence. I was drawn to Accolade because of their mission. The opportunity to make such an important impact through innovation, and my experience in building companies, is how I hope to further develop innovation, growth and success here. How are you applying your experience, having built one of the worlds most successful SaaS companies, to Accolade? Business success is derived from a number of factors. First and foremost, though, its about people and culture. By that, I mean our capacity to attract brilliant people who are excited about the mission, and the ability to retain a culture that is totally focused on a core set of values that guides how the company does business. It is about more than just profit and loss. It is also about people achieving their own internal vision for their lives. The best businesses have great people and cultures that those people cherish. This was my experience and everything at Accolade exists to make that happen. The best leaders I have ever worked with focus on culture and people, do their best to remove obstacles for their people, and then get out of the way and let them run. Thats my job here and I am excited about it. What product and data science practices can further benefit Accolades technology and consumer experience approach? The biggest trend happening across data science is personalization; the idea that I can use the information in the ecosystem to personalize your care. We can use this technology to stay continuously and immediately updated on the care experience with every individual, find the best provider, know the next steps in the care process, and anticipate what the potential outcomes will be for each individual. Personalization and matching are where data science applies in tangible ways with Accolade. The Accolade model is based on a foundation of technology and data science. We combine an exceptional team of Health Advisors who work with individuals and their families whenever they need support. This team has a tremendous collection of data and information at their fingertips, from the latest science on how life factors influence behavior and healthcare decision-making, to health plan and claims data, to clinical information and a range of tools and services to recommend based on individual care needs. Its a sophisticated model that works because of this combination of amazing people, science and technology, and its what separates Accolade from others in the field. What are some of the speci­fic challenges you have successfully overcome and how will those experiences inform your approach to leading Accolade? Every business goes through moments where it contemplates the changes required to scale to the next level. It is a constant process. To breakthrough, you have to be close to the market and listen to customers. You have to be willing to adjust and experiment with your offer and everything about the way you deliver it, because the market is voting with their dollars. Too often, entrepreneurs fall in love with their product and not with the market and the buyer. To succeed, we have to have a deep connection with our buyer. What are the benefits of working with a group like Carrick Capital Partners and how, if at all, did they influence your decision to join Accolade? When you look at investors, you want people with operations experience and who understand the entrepreneurial journey. You want someone who has been through it. The people at Carrick check those boxes. Being an entrepreneur can be lonely and painful. Sometimes you need a pat on the back, sometimes you need help thinking through things, and sometimes you need a push. Investors who come from an entrepreneurial background understand this. What are your goals for Accolade over the next five years in terms of both growth and also measureable impact on improving healthcare? On a macro level, Id like for us to impact the market enough so that no company would have their employees enter the healthcare process without a concierge system to help them. Healthcare is fragmented and complicated. Some of the biggest healthcare challenges and cost savings can come from supporting people throughout this process, helping them make better, more informed, more relevant decisions about their care. We need to influence the market to understand that effective support is a necessity and to realize that you wont get good results and health outcomes without this approach. In five years I believe Accolade will be a thriving, growing, profitable business that will have impacted healthcare by establishing a concierge service as a core part of the healthcare ecosystem. What are you most excited about at Accolade? I came here because I saw a company that wanted to change the world, and that is what I want to do. We are going to have to do incredible things that no one has done before. When we succeed, we can change the way the world approaches healthcare. That is what I wake up for, and I believe the same is true of everyone here. You cant NOT be excited by the opportunity to change lives and make peoples lives better. It will be challenging, but there is enormous joy that comes from doing something so difficult, so important and so rewarding. Mavenlink is a Growth Management software company and the leader in advanced project management and team collaboration for professional services businesses. MORE ABOUT THIS COMPANY × CARRICK CAPITAL PARTNERS PROVIDES EXPERTISE AND GROWTH CAPITAL FOR COMPANIES LIKE: Mavenlink is a Growth Management software company and the leader in advanced project management and team collaboration for professional services businesses. Mavenlink provides an intuitive online environment to collaborate with clients and colleagues in real-time, resulting in improved productivity, efficiency and profitability. Mavenlink delivers world-class customer service and support to more than half a million customers around the world. Mavenlink partners with companies such as Google, Microsoft, Intuit and NetSuite, ranking consistently as the #1 installed App in the Google Apps Marketplace. For additional information, please visit www.mavenlink.com. We really like the ease in which we can jump in and began getting work done in the system, and loves that we no longer have to spend time training clients or freelancers on how to use our project management solution. And for those clients that just cant let go of email, we are glad that Mavenlinks email integration allows them to participate actively in projects without ever having to let go of their Blackberry or smartphone. Instead of training others, we are now freeing up time to spend on our many other priorities, such as keeping clients happy and business development. We can conduct business better. Justin Knechtel The Small Potatoes INTERVIEW Leadership Q A with CEO Ray Grainger Can you explain exactly what your company does? At its core, Mavenlink organizes human capital to get work done in the professional services industry. Our technology offers a single place in the cloud for clients, contractors, and sub-contractors to interact, share and conduct business in real-time, anywhere in the world resulting in improved productivity, efficiency and profitability. Mavenlink delivers world-class customer service and support to more than half a million customers around the world. Partners include companies such as Google, Microsoft, Intuit and NetSuite. How did Mavenlink get started? Ive been thinking of the future of the workforce since 1992. When I worked for Accenture a client with 4,000 employees spread across the country in nine offices asked me to envision and design a system that would allow them to collaborate on client projects. At a time when the only email was intra-office and the web browser had not yet been invented, the proto-type we developed was ahead-of-its-time and cost prohibitive to deliver. So I sat on this concept believing that one day we would all work this way, and with every step in our technological evolution (email, the social web, SaaS), I became more and more convinced. Today, companies are increasingly breaking up into smaller collaborative networks and relying on people outside their organizations to get work done (30% of the workforce works outside of the companies they are contracted with). This fragmentation of the workforce, combined with the rise of social web, the adoption of cloud technology and SaaS as a business model, and the need for businesses to scale and compete globally, have created the perfect opportunity and a huge demand for an organization like Mavenlink. What are some of the specific challenges youve faced as the company has grown and how have you successfully addressed them? One of the biggest challenges is determining how much to invest to prove your ideas. As an entrepreneur Im tempted to achieve my entire vision all at once, but as the CEO, I must constantly prioritize and evaluate how to best deploy capital. Private equity money helps to fuel more opportunity, but requires more governance, rigor and accountability. By partnering with a private equity firm like Carrick, Mavenlink is able to leverage their experience. They are instrumental in helping us think through the right balance of growth and optimal capital deployment. Carrick not only provides capital, but they also help us build plans that work so that we can manage our aspirations and ambitions in a way that generates good economic outcomes. Tell us about your decision to bring in an equity partner. Before any company can determine their private equity needs, they must know their objectives and goals. In the case of Mavenlink, there is an extraordinarily large market. Because we see massive global transformations in the workforce, we need to infuse significant capital to help us capture market share. Mavenlink was boot strapped for the first three years by founders, friends and family. We were successful in tapping our own internal networks so that we could get to the point where we could prove what we were doing and attract outside equity investors. Once it was time to scale, we brought in a private equity partner with the confidence of knowing we were ready for accelerated growth and knew how to effectively deploy the capital. What are the benefits of working with a group like Carrick Capital Partners? When you select an equity partner it is critical to have aligned goals and trust. It will not always be smooth sailing. Problems are inevitable. Having a partner that trusts you and will jump in to help you solve problems is a must. I know that if something goes wrong, Carrick will help me fix it. They have a large network we can leverage for hires, board members, and industry expertise. These people advise us, help us to solve problems and, when necessary, reset expectations. They are business builders who have taken companies public and have already encountered similar problems. When they give advice they are speaking from the experience of having encountered similar situations. Having the support of their network and the insight from their extensive entrepreneurial experience is incredibly beneficial. In what areas of the business did you feel you could use help or counsel? We frequently leverage Carricks business operations thought leadership. Their understanding of business services and software has helped us shape and reshape our business. I have also found the peer counsel they provide to be incredibly valuable. It can be lonely as the CEO and having a partner to run ideas past can be very helpful. Without that, self-doubt can creep in. When it comes to Private Equity firms, Carricks value as a supportive, CEO-coach, is indispensable. Whats your advice for other growing businesses considering private equity? Have a very clear idea of the capital you need, not just to get to the next stage but to achieve the outcome you want. You have to be thoughtful about the kind of equity partner you select. There is an investor for every stage of risk. Make sure you understand what stage you are in. Then, you can focus on selecting the right partner who shares your vision and can help you achieve the desired outcome, whether it is continued growth, IPO or acquisition. Whats next for Mavenlink? Our organization has always been operated rigorously with a possible future IPO in mind. We are confident that we have built such a well-run company that it will withstand the public markets. To do that we will have to be the leader in our space, and effectively reinvent the way the world conducts business, which we believe we will. Seven Lakes Technologies is a vertically focused analytics technology solutions firm offering products and services for the Upstream (E P) Oil and Gas sector. MORE ABOUT THIS COMPANY × CARRICK CAPITAL PARTNERS PROVIDES EXPERTISE AND GROWTH CAPITAL FOR COMPANIES LIKE: Seven Lakes Technologies is a vertically focused analytics technology solutions firm offering products and services for the Upstream (E P) Oil and Gas sector; focused on improving business drivers and enhancing execution of customer business strategies. Seven Lakes offers innovative product suites focused around Drilling Completions, Production Operations, Accounting and Data Management Analytics. For additional information, please visit www.sevenlakes.com. INTERVIEW Leadership Q A with CEO Shiva Rajagopalan Can you explain exactly what your company does and what problem it solves ? Seven Lakes helps Oil Gas companies optimize operational efficiencies to improve production and increase return on capital through collaborative and data-driven planning, decision making and execution. Falling prices and rising expenses in the industry, have created a heightened demand for our software approach as the industry struggles to squeeze the most out of their margins. Other industries have the luxury of advanced technology, but Oil Gas is a few generations behind in integrating across functional information silos. As the sectors leading provider of innovative enterprise analytics and workflow software, there is an incredible opportunity for Seven Lakes to lead the transformation of Oil Energy producers into nimble, data-driven companies. How did Seven Lakes get started? My background is data. Earlier in my career I worked with Chevron providing insightful information that could help them achieve their goal of improving production and increasing their return on capital deployment. I became very excited about this opportunity and the potential impact data could have. I wanted to see if I could make things happen even faster by building something of my own. I looked around and found that MLPs were starting to blossom, and seized the opportunity. Tell me about your team and approach. When it comes to people, technology and process, our philosophy is to always prioritize quality over quantity. When we started out, I hired top people from the industry and my own alumni network. As we grew, I continued to hire great people maintaining the same focus on quality. When you place such importance on quality, some things take a little longer, but having great people and great chemistry in the organization has paid-off. Today our company is recognized among the top 20% of the Inc. 5000 for achieving three-year revenue growth of 459%. What are some of the speci­fic challenges youve faced as the company has grown and how have you successfully addressed them? We had our biggest setback in April of 2013 when we found out that our largest client had to put our project on hold, almost overnight, due to other business priorities. The natural instinct was to panic, but instead, I hired my first sales guy and we went on a sales rampage pursuing diversification. We grew our client base five-fold and doubled revenue. It set us on the course that made Seven Lakes the company it is today. During these bootstrapped years, we learned what the customers really wanted. This allowed us to only build with the full understanding of what products would actually sell. Tell me about your decision to bring in an equity partner. After a few years, the team became very confident about our collective understanding of the industry and what customers needed. We recognized the time had come to make the evolution from service delivery to becoming a true product company and to transition into a recurring revenue model. To build a subscription-based company we initially needed to defer revenue, which meant we needed access to outside capital to keep the shop running. We had a great banker who introduced us to several private equity and VC firms. But until we met the team at Carrick, we never really clicked with anyone. We met plenty of smart young people straight out of great business schools, but they lacked the breadth of experience actually building companies, developing technology and operations, taking products to market that the team at Carrick had. The depth of their experience, the chemistry we felt with such a forthright group, and their access to a network of people who could also help grow and influence our business were the factors that tilted us toward Carrick. We have been incredibly pleased with the amount of feedback and help they have provided. Anytime we send an email we receive a response almost immediately. Its as good as it gets. In what areas of the business did you feel you could use help or counsel? I was not looking for that much money. The company was pretty profitable. More than the money, I was doing this for the first time, and I needed guidance. For five years I bootstrapped, but I knew I would need people with incredible experience to help take the company to the next level. Im a techy. My strength is engineering, and I needed help in every other area. I didnt understand the value of marketing for example, because we made $15M in revenue without it. But Ive been fortunate to learn through these guys, and I can say that every aspect of the business has been positively impacted by their involvement. What are the benefits of working with a group like Carrick Capital Partners? In addition to the experiences Ive already described, the power of their network and the way they help guide a company like ours is more valuable than I ever imagined. We recently recruited a board member, Klaus Besier, and they helped us to see the role he could play and the value of his experience to our company. They were a true partner throughout that whole process. What has been the biggest change to the company as a result of working with a private equity partner ? The biggest change has been that I was always looking at what we could do over the next three months. Now with Carrick we are building for the long haul. Theyve helped us put a lot more structure in place and to hire incredible C-level talent. Theyve showed us how to shape a long-term approach to achieving our vision. Its clearer now, we are building a sustainable business. What are the lessons you have learned from the private equity relationship and how have you applied them? Understanding how to build a sustainable business in every aspect. That will be my biggest take away from the lessons learned. Whats your advice for other growing businesses considering private equity? The most important thing is to keep an open mind. If you assume that you know it all, you may be able to raise capital but you wont be able to do much with it. The ability to learn from people who have done this in the past and leverage their experience is the real value private equity offers. What Carrick refers to as their ABV, or approach to build value, is incredibly powerful. Money is nice, but their ABV has been far more valuable for us. What are you most excited about at Seven Lakes and whats next? In the short term, we are most excited about taking more of a value-based selling approach than we did in the past. In terms of whats next, we are very excited about a new stealth product we are developing, which we believe will transform the O G sector. CEOS BUILD VALUE AND SCALE YOUR BUSINESS EXECUTIVE CANDIDATES BECOME PART OF A THRIVING BUSINESS IN OUR PORTFOLIO CLOSE APPROACH TO BUILDING VALUE INVESTMENT APPROACH PORTFOLIO INSIGHTS THE TEAM CONNECT NEXT COMPANY PREVIOUS COMPANY Our Greatest Strength Approach to Building Value GROWTH REQUIRES MORE THAN CAPITAL Carrick takes an operational approach to growth investing, bringing a distinctive combination of operational and investment expertise to help entrepreneurs. WE ARE EXPERTS IN TECH-ENABLED BUSINESSES Specific industry focus and our quality over quantity philosophy positions us to dedicate the time and expertise a winning organization deserves. OUR EXPERTISE BECOMES YOUR ADVANTAGE Leveraging decades of knowledge and successes, our operational approach helps build companies that produce excellent returns and shift the industry. WE CONCENTRATE ON A FEW, SELECT, HIGH QUALITY COMPANIES AND DEVOTE SIGNIFICANT RESOURCES POST-INVESTMENT HELPING OUR COMPANIES SCALE. CARRICKS APPROACH TO BUILDING VALUE Together, with management, we identify the 3-5 TOP DRIVERS OF VALUE, key areas with the biggest impact on spurring growth. Collaboratively, we define the needs and actions to accelerate these TOP DRIVERS OF VALUE with three key initiatives: GO-TO-MARKET STRATEGY Sharpen your Value Edge Grow Sales Channels Increase Install Base Revenue GROW LEADERSHIP TALENT Win Industry Credibility Install Experienced Governance Foster Entrepreneurial Energy SCALE OPERATIONS AND TECHNOLOGY Improve Quality and Throughput Create Customer Stickiness Improve Unit Cost Efficiencies Download What Growth Equity Really Means PDF Take Carricks Growth Equity Fitness Test OUR UNIQUE INVESTMENT APPROACH MARKET FOCUS Business to Business technology-enabled companies: SaaS, BPO and Transaction Processing INVESTMENT PHILOSOPHY Thesis Driven Origination to identify sectors of high opportunity along with the specific companies demonstrating a Value Edge to best capitalize on that opportunity. Based on Carricks experience and expertise, Direct Targeting of high quality, attractive investment targets that fall outside of, but complement, our thematic sourcing efforts. INVESTMENT STRATEGY Direct investment with at least one Board seat, and full alignment with the CEO on our ABV and Top Drivers of Value INVESTMENT CRITERIA Company Specific Rev. $20M $100M EBITDA Positive Market Growth TAM > $1B Organic Growth > 15% Attractive Margins Target Gross Margin > 50% Target EBITDA Margins > 15% Capital Appropriate Value Capital Efficiency WE ARE FOCUSED ON TRUE VALUE CREATION We understand the difference between assets and scale-able companies. We are careful to avoid momentum investing and believe that a value-conscious approach is critical for building a long-term portfolio of companies with the right risk/return profile. INNOVATORS, PIONEERS AND LEADERS IN TECHNOLOGY ENABLED SERVICES PORTFOLIO All BPO SAAS August 6, 2015 | SAAS Accolade Accolade Inc. is an innovative consumer services company, dedicated to helping people get the right care the first time. Learn More × CARRICK CAPITAL PARTNERS PROVIDES EXPERTISE AND GROWTH CAPITAL FOR COMPANIES LIKE: Accolade Inc. is an innovative consumer services company, dedicated to helping people get the right care the first time. Our Accolade Health Assistants® take the time to get to know individuals, understanding the context of their healthcare decisions, building trust and influencing decisions as they navigate the complex healthcare system. By integrating leading technology, analytics and clinical decision support, were able to create personalized engagement and care plans for every client. This high-touch, high-tech approach consistently results in better savings, improved health outcomes, near-perfect client satisfaction ratings and Net Promoter Scores ranking among the worlds most respected brands. Founded in 2007 and headquartered in Plymouth Meeting, Pa., Accolade serves the families of some of the nations largest self-insured employers and payers. The company has been recognized as one of the nations 25 most promising companies by Forbes magazine, the fastest-growing private healthcare company by Inc. 500, and the No. 1 mid-sized company by Top Workplaces in Philadelphia. For additional information, please visit www.accolade.com. Accolade is delivering real value to Comcast in the form of more engaged and delighted employees and significantly lower healthcare costs. William Strahan Comcast Cable INTERVIEW LEADERSHIP Q A WITH CEO RAJEEV SINGH What attracted you to Accolade? At first, it was their mission. Accolade is a unique concierge healthcare company that helps people get the right care the first time. With a mission focused on helping improve health for millions of people, I couldnt think of anything nobler. Frequently, when people need healthcare assistance, they are in a state of anxiety and vulnerability; theyre confused by the process, anxious about their situation or concerned for themselves or family members. To have the opportunity to help people at these difficult times in their lives is incredibly gratifying. Accolade had an impressive foundation of experience and success, and was looking for a catalyst to elevate the company to its next level of growth. Technology will play a big part in that growth strategy. The healthcare space is one where the pace of innovation has accelerated almost exponentially, and if you are not constantly innovating, you run the risk of obsolescence. I was drawn to Accolade because of their mission. The opportunity to make such an important impact through innovation, and my experience in building companies, is how I hope to further develop innovation, growth and success here. How are you applying your experience, having built one of the worlds most successful SaaS companies, to Accolade? Business success is derived from a number of factors. First and foremost, though, its about people and culture. By that, I mean our capacity to attract brilliant people who are excited about the mission, and the ability to retain a culture that is totally focused on a core set of values that guides how the company does business. It is about more than just profit and loss. It is also about people achieving their own internal vision for their lives. The best businesses have great people and cultures that those people cherish. This was my experience and everything at Accolade exists to make that happen. The best leaders I have ever worked with focus on culture and people, do their best to remove obstacles for their people, and then get out of the way and let them run. Thats my job here and I am excited about it. What product and data science practices can further benefit Accolades technology and consumer experience approach? The biggest trend happening across data science is personalization; the idea that I can use the information in the ecosystem to personalize your care. We can use this technology to stay continuously and immediately updated on the care experience with every individual, find the best provider, know the next steps in the care process, and anticipate what the potential outcomes will be for each individual. Personalization and matching are where data science applies in tangible ways with Accolade. The Accolade model is based on a foundation of technology and data science. We combine an exceptional team of Health Advisors who work with individuals and their families whenever they need support. This team has a tremendous collection of data and information at their fingertips, from the latest science on how life factors influence behavior and healthcare decision-making, to health plan and claims data, to clinical information and a range of tools and services to recommend based on individual care needs. Its a sophisticated model that works because of this combination of amazing people, science and technology, and its what separates Accolade from others in the field. What are some of the speci­fic challenges you have successfully overcome and how will those experiences inform your approach to leading Accolade? Every business goes through moments where it contemplates the changes required to scale to the next level. It is a constant process. To breakthrough, you have to be close to the market and listen to customers. You have to be willing to adjust and experiment with your offer and everything about the way you deliver it, because the market is voting with their dollars. Too often, entrepreneurs fall in love with their product and not with the market and the buyer. To succeed, we have to have a deep connection with our buyer. What are the benefits of working with a group like Carrick Capital Partners and how, if at all, did they influence your decision to join Accolade? When you look at investors, you want people with operations experience and who understand the entrepreneurial journey. You want someone who has been through it. The people at Carrick check those boxes. Being an entrepreneur can be lonely and painful. Sometimes you need a pat on the back, sometimes you need help thinking through things, and sometimes you need a push. Investors who come from an entrepreneurial background understand this. What are your goals for Accolade over the next five years in terms of both growth and also measureable impact on improving healthcare? On a macro level, Id like for us to impact the market enough so that no company would have their employees enter the healthcare process without a concierge system to help them. Healthcare is fragmented and complicated. Some of the biggest healthcare challenges and cost savings can come from supporting people throughout this process, helping them make better, more informed, more relevant decisions about their care. We need to influence the market to understand that effective support is a necessity and to realize that you wont get good results and health outcomes without this approach. In five years I believe Accolade will be a thriving, growing, profitable business that will have impacted healthcare by establishing a concierge service as a core part of the healthcare ecosystem. What are you most excited about at Accolade? I came here because I saw a company that wanted to change the world, and that is what I want to do. We are going to have to do incredible things that no one has done before. When we succeed, we can change the way the world approaches healthcare. That is what I wake up for, and I believe the same is true of everyone here. You cant NOT be excited by the opportunity to change lives and make peoples lives better. It will be challenging, but there is enormous joy that comes from doing something so difficult, so important and so rewarding. August 6, 2015 | SAAS Axiom Law Axiom, a recognized leader in the business of law, is the worlds largest provider of tech enabled legal, contracts and compliance solutions for large enterprises. Learn More × CARRICK CAPITAL PARTNERS PROVIDES EXPERTISE AND GROWTH CAPITAL FOR COMPANIES LIKE: Axiom, a recognized leader in the business of law, is the worlds largest provider of tech enabled legal, contracts and compliance solutions for large enterprises. Axioms unique solutions combine legal expertise, technology and data analytics to deliver working in a way that dramatically reduces risk, cost and cycle-time. The firm comprises 1,200 lawyers, process engineers and technologists that serve over half the Fortune 100 across 14 offices and 5 centers of excellence globally. For additional information, please visit www.axiomlaw.com. I think somebody coming in from outside the industry, outside the legal profession, would looking at it, saying, Why do you do things like this? The clients dont seem to want it like that. The lawyers in the law firms dont seem overly happy either. Why not change it? Why not think of doing it a different way? And I think thats what Axiom brought into the market. And thats why I think Axiom is a really interesting company, because its has created something thats different from the in-house model. Its different from the law firm model. And I think it really bridges that gap and makes it a more interesting world in which we can choose what legal services we need at a given time for our corporate clients. Rosemary Martin General Counsel, Vodafone INTERVIEW Changing the legal game, with founder Mark Harris Can you explain exactly what your company does and what problem it solves? Axiom exists to help transform the legal industry for the better. At approximately one half-trillion dollars it is the worlds second largest and arguably most important service economy, but in practice, it hasnt experienced meaningful change in a century. A built-for-purpose 1,000 person specialty firm, Axiom is driving innovation into the operating model for managing risk and helping clients manage legal work more effectively by employing a radically streamlined cost-structure, technology and accumulated expertise in the business of law. How did Axiom get started? When I was an associate at a large white-shoe firm, I was asked to prepare a bill and couldnt ignore the discrepancy between my income and billable rate. This realization led me to think about all of the things inside a firm that were unnecessary; fine art, mahogany, enormous law libraries long since replaced by internet research. These things felt anachronistic for an industry that is largely information-based. I was particularly stuck by the fact that both parties to the service exchange were unhappy: clients were universally frustrated about their legal expenses and attorneys felt overworked and underpaid. For both sides of the exchange to be unhappy, this wasnt simply a bad bargain, it was a bad exchange. Our challenge was to figure out how to pull the exchange apart accounting for advances in technology and then put it back together in a way that made more sense and left everyone better off. Constantly pulling the legal service exchange apart and putting it back together in ways that advantage and serve the industry is Axioms long term journey. Fifteen years since we began, the firm is passing $200 million in sales and is changing the industrys operating model for managing risk. Axiom serves nearly half of the Fortune 100 across 10 offices and four delivery centers globally. What are some of the specific challenges youve faced as the company has grown and how have you successfully addressed them? Weve had to reinvent ourselves two or three times. In 2008 when the financial markets imploded roughly two-thirds of our clients were large banks. We had to reposition ourselves in the minds of our banking clients. Prior to this moment, Axiom was seen as an enabler to the banks: access to lawyers who would help them keep up with the growing demand for their products and the legal services necessary to bring them to market. Suddenly, we had to pivot and become a company that could help them solve the giant problems they were facing and drive meaningful change. When one of our biggest clients gave us three business days to drop our rates by 20%, we showed them a pie chart highlighting Axioms 8% slice of their total legal spend. We agreed to the reduction on the condition that they would let us take a hard look at how we could save them 50-70% on the 92% of legal spend we hadnt previously had the chance to address. Ultimately we had that same conversation with a handful of other banking clients, all with positive results. We tripled Axioms business over the next three years. Tell us about your decision to bring in an equity partner. One of Carricks founders was on our board prior to the formation of Carrick Capital Partners. Around the time Carrick closed their first fund, we were thinking about raising a little money, but what we needed and wanted more than capital was to continue the partnership that had delivered so much value. I think many people imagine that when entrepreneurs receive private equity, they accept the advice because thats the price they have to pay to get the money. But in our case it was almost the opposite, we didnt mind the money, of course, but what we really wanted was to keep people on our board who had a real passion for the Axiom mission and could share their unique experience building transformational businesses. What are the benefits of working with a group like Carrick Capital Partners? We are used to having financial partners but what differentiates Carrick is the depth of their involvement and the magnitude of effort they invest in our company. The energy, attention, and networks they bring to the table are extremely valuable. It is as though their sleeves are rolled up, and we are building the business elbow-to-elbow. One area where Carrick was instrumental was in building our board of directors, including playing an important role in the recent addition of former Chairman of the U.S. Securities and Exchange Commission, Mary Schapiro. Whats your advice for other growing businesses considering private equity? Pick your partners primarily on the character of the people doing the investing after that, what matters most is their commitment to your space and their experience working with other companies with related businesses. What are you most excited about at Axiom and whats next? I believe that we are changing the game in legal and compliance. We have an enormous opportunity to make a real difference by building a great company that could become the worlds largest, most innovative provider of legal services. July 13, 2016 | SAAS Bay Dynamics Bay Dynamics® is a cyber risk analytics company that enables enterprises to measure, communicate and reduce cyber risk. Learn More × CARRICK CAPITAL PARTNERS PROVIDES EXPERTISE AND GROWTH CAPITAL FOR COMPANIES LIKE: Bay Dynamics® is a cyber risk analytics company that enables enterprises to measure, communicate and reduce cyber risk. The companys flagship analytics software, Risk Fabric®, automates the process of analyzing security information so that its traceable, trustworthy and prioritized. The platform makes cyber risk everyones business from employees to line-of-business application owners to the board and actively engages all parties in measurably reducing it. Bay Dynamics enables some of the worlds largest organizations to understand the state of their cyber security posture, including contextual awareness of what their insiders, vendors and bad actors are doing, which is key to effective cyber risk management. For more information, please visit www.baydynamics.com August 6, 2015 | SAAS Everspring Everspring provides full-service, customized online-education solutions, partnering with leading universities looking for innovative ways to move online in a rapidly changing education environment. Learn More × CARRICK CAPITAL PARTNERS PROVIDES EXPERTISE AND GROWTH CAPITAL FOR COMPANIES LIKE: Everspring is dedicated to delivering a new standard of excellence in online education. The company provides full-service, customized online-education solutions, and partners with leading universities looking for innovative ways to move online in a rapidly changing higher education environment. Working alongside university administrators and faculty, Everspring helps the university define its online strategy and, thereafter, provides a range of customized services and support. These services include strategic planning, marketing, enrollment, student services and retention, course development support, faculty services, and technology development, integration and support. The outcome of these collaborations is industry-leading online education that reflects the unique nature of their partner organizations, and customized support services aligned with their partners values and goals. For additional information, please visit www.everspringpartners.com. Together, we design and deliver the future of education, online. INTERVIEW LEADERSHIP Q A WITH CEO JEFF CONLON Can you explain exactly what your company does and what problem it solves? Everspring is a Chicago based built-for-purpose company that was created to help universities build and run online degree programs at the masters and bachelors levels. Working in partnership with university leaders, Everspring helps develop a consistent strategy for starting or expanding their online programs. Leveraging the universitys academic foundation, Everspring supplies the capital, technology, business processes and required know-how to bring multiple programs and schools within the university online. Our partners retain control of critical academic functions while Everspring handles the marketing, enrollment, onboarding, course development and student and faculty support. Higher education is a $30 billion domestic market with a business model that hasnt changed substantially in 500 years. It is ripe for disruption and our evolving world needs it to change so that higher education can be made accessible to everyone. How did Everspring get started? When I was the CEO of Higher Education at Kaplan, overseeing about 125,000 students and $2 billion in revenues, I used to meet regularly with other industry leaders. A popular topic of discussion was the likely impact on higher education if traditional universities ever got serious about creating an online offering. In late 2011 I saw an opportunity to combine the technology and business process know-how I had acquired over 18 years in for-profit education and combine those skills with the academic offerings of traditional, highly-ranked universities to help guide these universities online in a comprehensive and brand consistent manner. Tell me about your team and approach? Our team includes experts recognized for developing innovative online learning experiences that ensure we create an environment that makes students feel like they are part of the university. This is a business imperative because its far too easy for un-engaged students to drop out of an online program. Our expertise in innovative instructional design combined with a sophisticated application of data analytics allows Everspring to retain students and to identify and proactively re- engage any students who appear to be losing interest. These attributes distinguish Everspring from its competition and are critical to our success. What are some of the specific challenges youve faced as the company has grown and how have you successfully addressed them? First, this is a very complex business, requiring the development of all university functions except financial aid and faculty. We knew we had to take a world class approach, and we prioritized securing a very experienced management team. Second, we had to convince a major university to sign a 10-year contract with a startup. Third, we needed to figure out how to work with faculty to create the courses, build the technology and attract students. Thanks to an exceptional team, our success, particularly in the challenging area of creating compelling courses, has been a point of competitive differentiation. Our final, ongoing challenge is to add enough students at the right student acquisition cost so that the business will scale. So far we have four universities under contract with a fifth in the works. Tell us about your decision to bring in an equity partner. Ours is a bit of a unique situation. We were founded in collaboration with Accretive, a private equity firm specializing in built-for-purpose companies. One of the founding Carrick team members was a part of that team. The decision to bring on an additional equity partner is one that every successful entrepreneur faces. Our business model requires substantial capital as we partner with new universities. Carrick provided much needed capital to finance our growth. Equally important was the insight that Carrick provides in their Board members earlier involvement in the business model and in dealing with the complex operating issues that arise from a for-profit company partnering with not-for-profit universities in a BPO environment. In what areas of the business did you feel you could use help or counsel? Ive run a number of companies over my careerthis is my fourth CEO job. They last three were pure B2C models; delivering products and services to a customer. But Everspring is a hybrid of an operating company and a BPO. Im in service with the universities but Im also in service to the students. My partner and I had never run a BPO business per-se. We were looking for help in thinking through the nuances of the business model and the best way to finance our growth in a manner that created value for all of our stakeholders. What are the benefits of working with a group like Carrick Capital Partners? Carrick brings an operating view point and they want to help, but they dont insert themselves into the details. It is exactly what you would expect from a succe