Riverside Makes a Graceful Exit

Firm Sells SaaS-Based Training Provider Grace Hill

The Riverside Company has exited Grace Hill, a provider of online training, credentialing, and mystery shopping solutions for property managers. Riverside invested in Grace Hill in 2014 and partnered with the management team to help it grow its core training business and expand product lines to include employee credentialing and mystery shopping solutions.

Grace Hill’s sales more than doubled and its EBITDA nearly tripled during Riverside’s hold. Grace Hill offers a suite of valuable training offerings that are available immediately online, allowing property managers to train employees quickly to ensure compliance with extensive rules and regulations on topics like Fair Housing, OSHA, sexual harassment, and more.

“We loved Grace Hill’s potential when we invested, and we worked hard with a great management team to achieve our goals,” said Riverside Managing Partner Loren Schlachet. “We focused on enhancing technology and course offerings to take the company to the next level.”

Riverside’s investment and operational expertise helped Grace Hill execute a number of strategic wins. Highlights include consolidating multiple learning management systems into one comprehensive solution, consistently developing and improving courses to remain at the forefront of the industry, devoting resources to sales and marketing to secure and retain blue-chip customers and improving the management team with key hires.

“Grace Hill is an outstanding company that enjoys a very loyal customer base for good reason,” said Riverside Partner Brian Sauer. “Its exceptional proprietary courses help ensure that property managers have all the information they need to run their properties efficiently and effectively.”

Riverside also sourced and helped integrate two add-on acquisitions, which delivered new customers, capabilities and reach. Today, Grace Hill serves more than 1,300 customers who manage 6.2 million housing units.

“Our team had clear investment goals and we were fully aligned with Grace Hill in meeting them,” said Riverside Principal John McKernan. “Our operating and transacting expertise helped build a bigger and better company that’s delivering rich and valuable content to a large and growing customer base.”

Riverside has extensive experience in its Software and IT industry specialization, having made more than 90 investments in the space, many of which are SaaS-based businesses like Grace Hill.

Working with Schlachet, Sauer and McKernan on the deal for Riverside Senior Associate David Bao, Operating Partner Mike Eblin and Finance Director David Kralic.

Raymond James, Jones Day and Deloitte advised Riverside on the transaction. Freeport Financial provided funding.