RFE Investment Partners, a Connecticut-based private equity firm, in partnership with Weave Growth, has made a recapitalization investment in Congruity HR, a professional employer organization that provides HR outsourcing services to small and mid-sized businesses across the U.S.
The company will continue to operate as Congruity HR and be led by Darrin Hunter, the founder, and the same management team who will remain a significant part of the ownership structure. Mike Maseda, who has scaled two large platforms in the PEO industry, has joined the team as the executive chairman of Congruity Group Inc., the parent company of Congruity HR. The holding company will look to invest in other regional PEO brands and operators.
“We are excited about this partnership and the opportunity to accelerate our growth trajectory,” Hunter said. “RFE’s resources, track record, and history of partnering constructively with management made them a perfect partner for us.”
“We are big believers that regional PEOs are often better partners to and have stronger relationships with SMBs compared to larger players in the space,” Maseda added. “Our intent is to preserve the value of partnering brands, leadership, and client service teams and supplement them with the advantages of scale, enabling technologies, and best practices.”
“Congruity’s ability to consistently grow year over year, while providing industry leading service levels and continuing to expand across geographies, was a clear differentiator,” said Paul Schilpp, managing director of RFE. “We believe that with the team we have assembled at the operating business as well as the Congruity Group Holding company level, the platform is in an excellent position to begin assembling additional brands, service lines, and regions.”