Mid-market private equity house FFL Partners has completed its majority investment in Honolulu-based human resources services company ProService Hawaii.
The business provides HR-related payroll, benefits, administrative, compliance and risk management services to small and medium-sized businesses, and serves more than 2,000 customers in Hawaii, where it is the largest business of its kind.
ProService offers a Professional Employer Organization (“PEO”) co-employment model, and a human resources outsourcing model for larger clients.
FFL partner Cas Schneller said, “ProService’s innovative service model and high-performance culture have enabled the Company to become the leading provider of human resources services in Hawaii, a state with a strong small business community and complex regulations and compliance requirements.
“We are excited to partner with Ben and his management team to drive further growth in Hawaii.”
FFL said the PEO industry is a fragmented, $8bn industry growing at nearly 10 percent per year.
This is being driven, in part, from an increasing recognition of HR as a strategic area where businesses can increase organizational effectiveness and reduce costs through outsourcing.
Previous FFL investments have included Crisis Prevention Institute, a provider of non-violent crisis intervention training, Interactive Health, a provider of corporate health management and preventive wellness programs, and Korn Ferry, the world’s leading provider of executive management solutions.
The firm is currently investing out of the $2bn fourth fund it closed in 2015.
FFL, which has more than $4.5bn under management in total, has been investing for over 15 years.
Copyright © 2017 AltAssets