Gemspring Capital Paves the Future for GoldenSource

On May 17, middle-market private equity firm Gemspring Capital announced that it has acquired GoldenSource Corp. for an undisclosed amount. Prior to the buyout, GoldenSource has raised $17mn in debt funding over multiple rounds and was backed by The Invus Group with over $10bn under management. 

Founded in 1984 and headquartered in New York City, GoldenSource is an enterprise software provider enabling some of the world’s largest investment banks, asset managers and financial services firms to manage and utilise their data. With an estimated 380 employees and notable clients such as Franklin Templeton and HSBC, the company is set for its next stage of growth post-acquisition. Given that GoldenSource dedicates half of its time and resources into research & development efforts, keeping the business private is likely to keep focus on product enhancement. Without the scrutiny and demands of public investors, they can keep ensuring that the technology behind their data is always a step ahead of their clients’ needs.

The deal follows a series of bolt-on acquisitions made by Gemspring Capital earlier this year. Firstbird, a developer of employee referral software solutions, came under the wing of Radancy, a portfolio company of Gemspring Capital. "For over three decades, GoldenSource's products and data model have provided the 'source of truth' underlying critical decisions made by the Company's financial services customers. Given increased regulatory reporting requirements and the proliferation and expanding cost of new data sources, we see increased demand for GoldenSource's offerings going forward”, added Aron Grossman, Managing Director at Gemspring. GoldenSource will also stand to gain from access to Gemspring’s portfolio companies, given its heavy reliance on data partners as well as system integration and consulting partners.

Gemspring believes there is significant opportunity to build upon GoldenSource's product leadership to address market needs, both organically through increased R&D as well as through strategic acquisitions. Moving forward, Gemspring and GoldenSource will work hand-in-hand to accelerate both organic and inorganic growth initiatives.

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