H.I.G. Capital, a global private equity investment firm, announced that its portfolio firm, National Asset Recovery Services Inc., acquired Pinnacle Financial Group, a third-party debt collection company, according to a news release.
Pinnacle's clients include credit card issuers, education firms, health care providers, telecommunication companies, retailers, auto loan firms and debt buyers.
National Asset Recovery will retain the Pinnacle management team, led by CEO Tony Michel. The acquisition is expected to build National Asset Recovery's domestic presence to five call centers and a total of seven sites in the U.S., Jamaica and Panama. The combined companies will employ an estimated 3,500 people.
Christopher H. Buehrle, National Asset Recovery's CEO, says, "With their excellent reputation and capabilities in the third-party collections arena, Pinnacle is a welcome addition to NARS, significantly increasing the combined capacity of both companies. This acquisition is a positive first step as we continue to grow and enhance our suite of services and we welcome the Pinnacle family to the NARS family of employees."
Pinnacle is the third recent ARM investment for H.I.G. Capital collaborating with Reprise Management Group. Kaulkin Ginsberg, an advisory and consulting firm, advised Pinnacle on the deal and initiated the transaction.
Greenberg Advisors, a mergers and acquisitions advisory firm, advised HIG and Reprise's CEO Tim Bauer.
"We're glad to see that this investment platform has progressed so well, given that it began with only a senior industry executive, an idea and us," Greenberg tells Collections & Credit Risk. "This is the third transaction that we've advised H.I.G. and Tim Bauer on. It appears to be a great strategic fit for both seller and buyer as both seek continued growth for their businesses."
"This acquisition continues H.I.G.’s strategy of investing in high quality assets with strong management teams and excellent client relationships across the ARM sector, following our prior investments in NARS and TRAKAmerica," says Jeff Zanarini, managing director at H.I.G. Capital.
Adds Reprise's Bauer, "This more than doubles NARS’ domestic footprint in highly strategic areas, and cements the combined NARS and Pinnacle as an industry leader in first-party, third-party, and BPO work. We look to continue to invest in quality businesses in the ARM sector and grow our platform."
