ChrysCap leads $53M Series B round in systems integrator LiquidHub

Private equity firm ChrysCapital has struck another cross-border deal, leading a series B funding round worth $53 million in Pennsylvania-headquartered LiquidHub. This is largely a secondary round where NewSpring Capital has exited its seven-year-old investment. 

Founded in 2001, LiquidHub works with global healthcare and financial services companies supporting their enterprise goals through planning, execution, and management of technology across the full technology lifecycle. It is in effect a digital integrator and helps businesses improve customer engagement and drive growth. 

It has operations in North America, Europe and Asia, including India. In India it has presence through centres in Hyderabad and Mumbai. 

Although primarily focused on India with its sector-agnostic private equity funds, ChrysCap has earlier made a few cross-border investments but none this large and this is one of the only such deals in the recent past. 

“As we began looking to expand our investment portfolio in the US technology sector, we saw that LiquidHub’s management team has built one of the largest practices in the digital transformation space using cloud, analytics and mobile technologies. These disruptive technologies represent the fastest growing areas within the IT services sector and have become top of mind for CIOs and CMOs globally," said Sanjay Kukreja, managing director at ChrysCapital. 

The investment will support LiquidHub’s growth plans, which include an emphasis on strategic mergers and acquisitions in the digital customer engagement services market. 

“This is the first step in our next phase of growth, which will solidify our position in the marketplace and extend our ability to deliver the most advanced technology solutions, quickly and efficiently, across the globe,” said Jonathan Brassington, CEO and co-founder of LiquidHub. 

LiquidHub more than doubled its revenue in the last three years and continues to be one of the fastest growing firms in the digital transformation space. 

In a previous funding round, it had raised $38 million in 2007, led by NewSpring Capital. NewSpring, a US-based private equity firm, led a $20 million Series A preferred stock financing with a $7.5 million investment. Its limited partners, including PPM America Capital Partners and Credit Suisse Alternative Investments, syndicated the remainder of the round. In addition, NewSpring facilitated the placement of an $18 million senior credit facility provided by M&T Bank.

With the latest funding round it has completely exited. It is not immediately clear how much of the new funding went into the company. 

ChrysCapital’s Kukreja said that it co-invested with a US-based family office in this transaction but declined to disclose the name of the investor. 

ChrysCapital, which has raised over $2.5 billion across half a dozen funds since 1999, has deployed over $2 billion across 65 investments and has successfully exited over 40 investments. It has invested in sectors like pharmaceutical, healthcare, consumer, manufacturing and financial services sectors apart from IT. 

Two years ago, it raised its sixth fund with a corpus of $510 million. Since then it has invested in existing and new portfolio firms, including Intas Pharma, Federal Bank, Ipca Labs, KPIT Technologies, Magma Fincorp, AU Financiers, Infotech Enterprises, Cavinkare and Torrent Pharma, according to VCCEdge, the data research platform of VCCircle.

(Edited by Joby Puthuparampil Johnson)

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