TriSpan LLP has successfully closed a continuation vehicle investment for Prestige PEO Holdings, signaling continued confidence in the human resources service provider's growth potential. The transaction, led by growth equity firm Lead Edge Capital, will provide critical follow-on capital to support Prestige's strategic expansion in the professional employer organization (PEO) market.
Since TriSpan's original investment in 2020, Prestige has demonstrated significant growth, completing five strategic acquisitions and expanding into new geographic markets. The company, which provides comprehensive HR services to small and mid-size businesses, has distinguished itself through a unique broker-driven model and high-touch customer service approach.
Andy Lubash, CEO and Founder of Prestige, emphasized the importance of the continued partnership with TriSpan, highlighting the firm's role in supporting the company's market expansion. The investment reflects confidence in Prestige's ability to capitalize on opportunities within the competitive PEO landscape.
The continuation vehicle involves a diverse group of investors, including substantial commitments from TriSpan affiliates. This financial structure allows Prestige to access additional resources for organic growth and potential strategic initiatives without disrupting its existing operational momentum.
Baudoin Lorans, Partner at TriSpan, noted the company's impressive performance, particularly its ability to attract new clients through the broker channel and maintain high client retention rates. The investment underscores the potential for continued value creation in the professional employer organization sector.
Tim Bemer from Lead Edge Capital characterized the investment as an opportunity to support a company with a two-decade track record of efficient growth and consistent client satisfaction. The transaction was supported by financial advisor Lazard Frères & Co. LLC and legal counsel from Goodwin Procter LLP.
Prestige's unique market position is further strengthened by its advanced credentials, including ESAC accreditation, Workers Comp Risk Management certification, and IRS Certified Professional Employer Organization status. These certifications demonstrate the company's financial stability and commitment to regulatory compliance.
The continuation vehicle represents a strategic approach to supporting mid-market companies, providing them with the capital and resources necessary to expand and innovate in a competitive business environment. For Prestige, this means continued opportunities to simplify HR processes for small and mid-sized businesses across the United States.
