Featherweight Capital Partners (FCP), an Austin-based equity firm, has acquired Broadcat, a provider of behavior-based compliance content to legal and compliance teams. The transaction includes growth investment that will enable Broadcat to address rapidly increasing demand for its content and expand its service offerings to provide broader compliance solutions based on Broadcat’s operationally focused compliance design process. In conjunction with the transaction, the company announced that Alex Klingelberger, managing partner of FCP, will join Broadcat as chief executive officer.
Broadcat provides corporate compliance content based on a behavioral science approach. Delivered through a subscription-based model, its content is increasingly popular for role-based and operationalized compliance training. The company’s growth efforts are focused on expanding its content library and creating additional products and solutions responsive to the growing needs of its enterprise customers, which include Uber, Hershey, Johnson & Johnson, Cisco, Kraft Heinz, Takeda and Booking.com.
“The demand for Broadcat’s products really accelerated during 2021 because they address compliance challenges from a perspective that focuses on two critical areas: 1) creating solutions that mitigate the burgeoning workloads of compliance leaders; and 2) enabling compliance leaders to present content relevant to and aligned with business leaders,” Klingelberger said. “We are excited to continue building upon Broadcat’s reputation as an innovator and thought leader in this industry.”
“We were looking for someone that really understood what made the brand unique and was as passionate about growing it as we were in establishing it,” said Ricardo Pellafone, Broadcat’s founder. “We found that, as well as a track record of success, in Alex.”
The acquisition of Broadcat represents the second completed independent sponsor transaction for FCP. The firm had previously partnered with institutional investors including HCAP Partners to acquire TCS Healthcare Technologies, a provider of case management and population health software to healthcare payers.
Debt financing for the acquisition of Broadcat was provided by Live Oak Bank in Wilmington, North Carolina. Live Oak had previously provided senior debt financing for the acquisition of TCS Healthcare Technologies by FCP and other firms. Michael Attaway and Ryan Ricke from Kane Russell Coleman Logan of Dallas provided lead legal counsel to FCP. Zach Jones of Vela Wood served as transaction tax counsel. E78 Partners served as accounting advisor to FCP in the transaction. Megan Fooshee of Fooshee Business Law served as counsel to Broadcat as it relates to the transaction. Securities were offered through Finalis Securities.
About Featherweight Capital Partners
Featherweight Capital Partners is an independent private equity sponsor based in Austin, Texas. FCP was founded by Alex Klingelberger, a leading investment banker to emerging growth technology companies since 2003. FCP invests in differentiated, sub-scale enterprise technology companies with between $2 million and $6 million in revenue. For more information, please visit www.featherweightcapital.com.