As many investors wait for more blockbuster mergers and acquisitions, there remains a steady deal flow across the world, especially in the middle market.
Huntsman Gay Global Capital, the private equity firm founded by billionaire industrialist Jon Huntsman and former Bain executive Robert Gay, bought a majority stake in iQor Holdings, the second largest accounts receivable management company in the world, CNBC has learned.
Financial details of the deal size were not disclosed, but sources told CNBC that it’s the largest of six deals Huntsman Gay has made since it raised a little more than a billion dollars in the summer of 2009.
Hank Greenberg’s Starr International also emerged as an investor in iQor.
“Right now, this is a time where there are an awful lot of deals out there,” Huntsman Gay Managing Director Gary Crittenden, the former chief financial officer at Citi and American Express, said. “Financing for mid-size deals is there.”
The private equity firm -- with six co-founders including NFL Hall of Famer Steve Young-- takes aim at middle-market companies with either family ownership or management teams they want to keep in place.
Instead of economic and political uncertainty freezing this space, it’s actually serving as a catalyst, Crittenden said.
“Uncertainty with tax laws is fast-forwarding a lot of activity,” said Crittenden, who admitted the economy remains relatively weak. But that won’t be a hindrance to deal making. "(i)n spite of economic weakness, great companies are great companies,” he added.
If iQor is not a household name, that doesn’t mean it lacks a broad reach. Based in New York, it has 11,000 employees worldwide, and in terms of scope, its 2009 revenue neared $350 million dollars.