Transaction

JEGI CLARITY Represents HCM & Risk Management Solutions Provider CARCO Group In Significant Investment From CIP Capital

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Sectors:
  • B2B Information and Events
  • Software

CARCO Group, Inc. (“CARCO” or the “Company”), a leading provider of tech-enabled and compliance-driven human capital management and risk management solutions, has received a significant investment from CIP Capital Fund, L.P. (“CIP Capital”). The Company’s core solution offering provides robust onboarding and pre-employment background screening services to the large enterprise market. CARCO currently serves clients across the financial services, transportation, and media and telecom end-markets, among others. CARCO was founded in 1977 and is headquartered in Holtsville, NY.

JEGI CLARITY (www.jegiclarity.com), the leading independent investment bank for the global media, information, marketing, software and tech-enabled services sectors, headquartered in New York, NY, represented CARCO in this transaction.

“We are delighted to announce this strategic partnership with CIP Capital for the next stage of our company’s growth,” said James Owens, CEO of CARCO. “CARCO has been setting the standard for accurate and reliable background screening services since our inception almost 40 years ago. By providing a comprehensive and technology-driven solution, CARCO has become the recognized leader in serving corporations throughout the employee hiring process. CIP Capital has demonstrated a deep understanding of our business model and how CARCO uniquely serves our valued clients to meet their human capital management and risk management needs. We look forward to making continued investments that will further develop and expand our solution offering in order to better serve our client base.”

“CARCO represents an exciting opportunity for CIP Capital in the growing human capital management market,” said Scott Marden, Managing Partner of CIP Capital. “We believe large corporations will continue to seek best-in-class providers to assist with risk management and compliance solutions across the employee lifecycle.” CARCO represents CIP Capital’s second investment in the human capital management space. Bobby Kelly, Managing Director of CIP Capital, added: “CARCO has differentiated itself in the market through its high-quality and accurate processes, commitment to regulatory compliance, and leading technology capabilities. We look forward to partnering with Jim and the CARCO management team to build on their strong client relationships and stellar reputation.”

Sidley Austin LLP served as legal counsel to CIP Capital. Seward & Kissell LLP served as legal counsel to CARCO.

Having almost 40 years in the background screening business and a stellar reputation for quality, we were looking to find an investor that shared our commitment to quality and fully appreciated our differentiation from the other companies in the space. Not having experience in choosing an investment banker, we faced a number of choices. A close confidant recommended JEGI CLARITY to help us navigate the process and that recommendation was spot-on. JEGI CLARITY had a stellar team and relentless focus. They were invaluable throughout the process, providing critical contributions in every stage. I wholeheartedly recommend JEGI CLARITY to any prospective seller, and would use them again in a heartbeat.

James Owens, President and CEO, CARCO Group
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