Boathouse Capital, a Wayne, Penn.-based middle market mezzanine debt and equity investor, has put $9.1 million in two software companies: Tampa, Fla.-based Pilgrim Software Inc., and Charlotte, North Carolina-based AvidXchange. Specific terms of the two deals were not released. Pilgrim Software makes compliance and risk management software. AvidXchange is a provider of accounts payable management software.
Boathouse Capital, a middle market mezzanine debt and equity investment fund located in suburban Philadelphia, is pleased to announce the funding of two new portfolio companies.
On February 14, 2011, Boathouse invested in Pilgrim Software, Inc. Headquartered in Tampa, Florida, Pilgrim has provided compliance and risk management software to companies in highly regulated industries for nearly twenty years. Pilgrim offers a fully integrated suite of enterprise software to hundreds of blue-chip customers in the life science, food and beverage, and manufacturing industries. The company’s software helps companies facing complex and burdensome regulation – particularly within the life sciences and healthcare industries – manage an increasingly complex regulatory and compliance environment. Pilgrim boasts industry-leading customer satisfaction and retention rates and has received numerous awards for its product suite, including Frost & Sullivan’s Enterprise Compliance & Quality Mgmt Company of the Year for three years in a row. Customers have the option of purchasing Pilgrim’s software under either a perpetual license with annual maintenance model or under a hosted Software-as-a-Service (SaaS) subscription model.
Boathouse’s investment in Pilgrim took the form of a subordinated debt and was made in conjunction with the purchase of the company by Boston-based Riverside Partners, a middle market private equity firm focused on growth oriented companies primarily in the healthcare and technology industries. Riverside’s acquisition was made in partnership with the Pilgrim management team and founders of the business. The Corporate Finance Group of Silicon Valley Bank provided a senior revolving credit line and term loan to the transaction.
On November 22, 2010, Boathouse invested in AvidXchange, Inc. Founded in 2000 and based in Charlotte, North Carolina, AvidXchange is a leading provider of accounts payable management solutions for hundreds of mid-sized companies in the real estate, banking, and healthcare industries. AvidXchange’s product suite integrates with a customer’s existing accounting systems to centralize and streamline accounts payable workflow. AvidXchange enjoys outstanding customer satisfaction and retention rates. AvidXchange offers its software on a hosted Software-as-a-Service (SaaS) subscription basis.
Boathouse made a subordinated debt investment in AvidXchange, and the proceeds were used to facilitate AvidXchange’s acquisition of certain assets of EnergySolve, a complementary energy payables management software and consulting company based in New Jersey, and also to fund future growth initiatives.
About Boathouse Capital
Headquartered in Wayne, PA, Boathouse Capital manages a $105 million committed fund and seeks to invest mezzanine debt and equity in high quality lower middle market companies in partnership with management teams and private equity funds. We invest up to $10 million in companies with EBITDA of at least $2 million that have with top quality management teams, sustainable competitive advantages, a history of profitability, and end markets that can weather cyclical downturns.
Our principals have a combined 50+ years of lower middle market investing experience and have deployed over $1 billion as a team. Boathouse was founded in 2008 on a foundation of fair dealing, hard work and the belief that the best deals are those grounded in trust and common goals. Boathouse does not strive for returns at the expense of others; we believe that the best strategy is one in which everybody wins.
With these two investments, Boathouse has now made a total of six new platform investments since August 2010. Details on the rest of the portfolio can be found on our website at www.boathousecapital.com