Human Capital Management
Human Resource departments have historically been neglected within organizations and are now undergoing a broader digital transformation trend through enterprise and HR transformation priorities. CEOs are focused on cost reduction technology, purpose & culture building, and strategic workforce planning; whereas CHROs preferred investments centered around employee experiences from onboarding to talent development and offboarding.
These transformations have created opportunities for HR software vendors in areas like recruiting, applicant tracking, employee engagement, training, performance management, workforce management and more. The pandemic and competitive labor market have driven firms to prioritize HR infrastructure and invest significantly in HCM platforms for talent attraction, employee retention and workflow optimization.
Other emerging trends include an increased focus on analytics, process automation and integrability across enterprise systems, all of which work to create an underserved demand for analytics-powered HR automation solutions to help connect enterprises and support workforces throughout their employee journeys.
PE-backed platforms have been at the forefront of acquiring best-of-breed point solutions to expand product breadth, resulting in HCM suites with talent acquisition, talent management and HRIS functionality as well as large roll-ups within certain sub-segments of the market. The recent pace of funding rounds and acquisitions has begun to reshape this existing landscape.
Our firm has been involved in numerous consequential deals in this space, advising on both buy-side and sell-side transactions for many of the major strategic deals and new private equity platforms across employee engagement, performance management, payroll management and learning management.