The Carlyle Group Invests in ProKarma
Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that it has signed an agreement to make a substantial investment in ProKarma, a high-growth IT services firm focused on “Next-Gen” services that enable innovations around today’s burgeoning technologies, including Digital, Analytics, Cloud, Big Data, and DevOps. The transaction is expected to close on October 31, 2016, subject to regulatory approvals. Terms of the transaction were not announced.
Endeavour Capital, ProKarma’s current financial partner, will exit its stake. Endeavour Capital has supported the growth of ProKarma since 2012.
Founded in 2004, ProKarma has co-headquarters in Omaha, Nebraska, and Portland, Oregon with 2,400 employees across 21 global offices. The firm serves more than 150 customers from a range of industries, including TMT, healthcare, transportation, industrial, financial and consumer.
Cam Dyer, Managing Director in Carlyle’s Technology, Media and Telecom team, said, “ProKarma is a fast-growing, founder-led platform with outstanding client satisfaction resulting from their leading edge solutions and culture of thought-leadership and partnership. The company has a strong track-record of innovation and is well positioned for further organic and acquisition-driven growth.” Carlyle Managing Director Julius Genachowski added, “This is an excellent fit for Carlyle, where we can leverage our global platform and deep multi-sector expertise to help a strong company advance to its next phase of growth.”
Vivek Kumar, co-founder and President of ProKarma, said, “We are excited to partner with Carlyle, a leading technology investor. Their deep industry expertise, global network, available capital and track record of supporting management teams to create value will position ProKarma to continue innovating for its customers as we continue to scale our platform.” Jeff Miller, co-founder and Chief Sales Officer of ProKarma added, “This investment will enable us to make larger acquisitions to strengthen our Digital, DevOps, Cloud and Analytics capabilities in addition to enhancing our vertical expertise in TMT, healthcare and transportation”.
Equity for this investment comes from Carlyle Partners VI, a $13 billion U.S. buyout fund. This investment in ProKarma will add to Carlyle’s experience in the Technology & Services space, which includes investments in CommScope, Dealogic, ION, SS&C Technologies and Veritas.
Carlyle Partners VI is part of Carlyle’s Corporate Private Equity segment, the oldest and largest of the firm’s four business segments, with assets under management of $58 billion as of June 30, 2016. Corporate Private Equity, with 277 investment professionals, operates 32 active funds worldwide with more than 275 active investments as of June 30, 2016.
J.P. Morgan Securities LLC and Alston & Bird advised Carlyle. ProKarma was advised by Credit Suisse and Perkins Coie.
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ProKarma is an enterprise IT solutions company that specializes in full-scale implementation and delivery capabilities. ProKarma drives innovations around today’s burgeoning technologies, including Digital, Analytics, Cloud, Big Data, and DevOps while harnessing the latest solutions across multiple platforms, including SAP, Microsoft and Oracle. It operates in 21 offices across the United States, India, Argentina and Peru. For more information, visit www.prokarma.com.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $176 billion of assets under management across 128 funds and 170 fund of funds vehicles as of June 30, 2016. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,650 people in 35 offices across six continents.