Global private equity firm KKR will acquire a significant minority stake in ghSMART, a global leadership advisory firm. ghSMART partners with CEOs, boards, and investors to develop effective executive teams and support important leadership decisions. The company pioneered the leadership advisory industry in 1995 and serves many influential organisations, including Fortune 500 companies, asset management firms, and non-profits.
ghSMART’s founder, partners, and employees will retain majority ownership, and the current management team, led by CEO Jeff McLean, will continue in their roles. Financial terms of the transaction were not disclosed. To date, ghSMART has completed almost 30,000 leadership assessments and over 5,000 C-Suite advisory engagements, achieving a 98% client satisfaction rate.
KKR intends to support ghSMART’s growth by helping it to expand its client base and further develop its digital product offerings. KKR is making its investment through its Ascendant Fund, which invests in middle market businesses in North America as part of KKR’s Americas Private Equity platform. Kirkland & Ellis served as legal advisor to ghSMART, while Dechert served as legal advisor to KKR.
Following the close of the transaction, KKR will support ghSMART in expanding its employee ownership program for all 173 employees. Since 2011, more than 65 KKR portfolio companies have awarded billions of dollars in total equity value to over 160,000 non-senior management employees.
