Knox Capital Portfolio Company Haystack ID Recapitalized by Quad-C Management

Deal is the result of HaystackID’s exceptional growth in the competitive e-discovery market, fueled by Knox’ capital investment, domain expertise and strategic, operational guidance

February 13, 2020

February 3, 2020 - Chicago, IL - HaystackID, LLC, a portfolio company of Knox Capital Holdings, LLC, announced the completion of a strategic recapitalization by Quad-C Management, Inc. The transaction marks a transition from founding management and Knox Capital Holdings, LLC, supported by investment from ORIX Private Equity Solutions, Baird Principal Group and Maranon Capital. Baird Global Investment Banking Group served as the lead financial advisor and Marks Baughan Securities was co-advisor to HaystackID, LLC on this transaction. Knox, select company founders and Baird Principal Group will retain a minority stake in the company going forward.

Since its original investment in 2017, Knox led the acquisitions of Inspired Review, Envision Discovery and eTERA Consulting. In addition to these strategic add-ons, the company grew organically at more than double industry benchmarks. “We are thrilled to help our founders and management team capitalize on their hard work and personal investment. They delivered exceptional results,” says Knox Capital Partner Mike Bryant. Knox retained a minority interest in HaystackID and Bryant will retain a seat on the Board of Directors going forward. “We are big believers in Haystack and its management team, so it was an easy decision to remain as investors”, says Knox Capital Founder and Partner Alex Gregor.

HaystackID's executive management team, led by CEO Hal Brooks, will continue to lead the company as it begins its next stage of expansion. “With a strong assist from Knox, we’ve built a complete company with an all-in-one range of services, and augmented a growing management team that is resonating with our growing corporate and law firm client base," added Hal Brooks. "We are excited to partner with Quad-C to help facilitate the next stage of HaytackID’s growth, with a focus on additional investments in infrastructure, people, and acquisitions, both domestically and internationally."

Terms of the investment were not disclosed.

About Knox Capital

Foundational Capital for Middle Market Businesses. Founded in 2013, Knox Capital was created to provide capital and hands-on operating resources for founder and entrepreneur-owned middle market businesses. We operate under flexible investment horizons through private investors that are focused on the long-term. By utilizing our extensive executive and operating advisor network, Knox makes tailored investments across industries in partnership with owners and management. Knox Capital is headquartered in Chicago, Illinois. Learn more at Knox-Cap.com.

About HaystackID

HaystackID is a specialized eDiscovery services firm that helps corporations and law firms find, listen to, and learn from data when they face complex, data-intensive investigations and litigation. With an earned reputation for mobilizing industry-leading computer forensics, eDiscovery, and attorney document review experts, its Forensics First, Early Case Insight, and ReviewRight services accelerate and deliver quality outcomes at a fair and predictable price. HaystackID serves more than 500 of the world's leading corporations and law firms from North American and European locations. Learn more at HaystackID.com.

About Quad-C

Founded in 1989 and headquartered in Charlottesville, Virginia, Quad-C is a middle market private equity firm focused on investing in well-established business services, consumer, general industrial, healthcare, specialty distribution, and transportation/logistics companies. In its nearly three-decade history, Quad-C has invested over $3 billion of capital in over 65 companies. The Quad-C team is committed to partnering with entrepreneurs and management teams to accelerate growth and create long-term value. Learn more about Quad-C at QuadCManagement.com.

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