ZRG secures new secondary equity investment to accelerate growth of global talent advisory platform

Rochelle Park-based ZRG on Thursday said it secured a new secondary equity investment from a consortium of new and existing institutional investors led by Timber Bay Partners.

ZRG, a portfolio company of RFE Investment Partners, also provides interim/on demand talent solutions, human capital consulting services and recruitment process outsourcing.

This new capital will accelerate ZRG’s acquisition and hiring efforts as the company continues to build out a full suite of offerings to help clients solve people problems.

In line with strategic fundraising, ZRG announced Dec. 6 that it acquired Hub Recruiting, a tech-enabled recruitment process outsourcing provider to address volume hiring needs globally.

The new equity round included increased support from existing investors as well as a number of new institutions. RFE will manage the new equity consortium and will maintain a control equity position.

Concurrent with the new equity investment in the company, ZRG also announced the closing of a new and expanded senior credit facility led by Truist Bank. Proceeds will be used to refinance existing debt and provide additional capital for future growth.

“We see tremendous opportunity to acquire great businesses in the recruiting and talent advisory areas that will augment our organic growth across all of our business lines. The new equity capital and expanded credit facility provide ample dry powder for our organic and acquisition growth plans,” Larry Hartmann, CEO of ZRG, stated. “Additionally, we will continue to invest in our disruptive Zi technology platform and grow our interim and consulting businesses in tandem with our core executive recruiting deliverables.”

“ZRG has an exceptional track record of supporting and growing acquired companies that have all thrived under ZRG’s resources and unique culture. This new capital accelerates our strategy of partnering with great new human capital people and brands,” Michael Rubel, managing director at RFE, said.

Atlantic-Pacific Capital served as exclusive global financial adviser and placement agent. Truist Bank served as the sole lead arranger for the new credit facility. Specific financial terms were not disclosed.