Carmel, IN/New York, NY – June 21, 2023
Partnership to accelerate Baker Hill’s growth trajectory, positioning the company for success amid strong market demand from financial institutions for lending and risk management solutions
Baker Hill (the “Company”), a provider of cloud-based, end-to-end loan origination, risk management, and analytics software, today announced that Flexpoint Ford (“Flexpoint”), a private equity firm specializing in investments in the financial services and healthcare industries, agreed to acquire the Company. Baker Hill is a portfolio company of The Riverside Company. The transaction is expected to close pending receipt of customary regulatory approvals.
Through the partnership, Flexpoint will support Baker Hill’s continued success and its expanding client base, building on the Company’s record revenue growth in 2022. The Company will gain access to Flexpoint’s resources, including an experienced team with extensive knowledge of financial technology, and capital to fund ongoing product innovation and acquisitions. Furthermore, Flexpoint’s experience investing in banks provides it with insight into the needs of this client segment, which will enhance the Company’s ability to innovate to serve the needs of its bank and credit union customers. Baker Hill’s President and CEO, John M. Deignan, and the existing leadership team will continue to lead the business and remain shareholders in the Company.
“Baker Hill has a long-standing reputation for being a trusted provider of differentiated loan origination and risk management software, which has helped fuel our consistent growth each year. This ongoing market validation is a source of inspiration for our team and by partnering with Flexpoint we can continue to elevate the lending experience for our bank and credit union clients,” said John M. Deignan, President and CEO of Baker Hill. “Our team is confident this partnership will provide new opportunities to deliver more value for our clients and the communities they serve.”
“Given our deep experience in financial services, we are thrilled to partner with John and the Baker Hill team in the next chapter of their growth. Baker Hill has maintained a strong track record of innovation as evidenced by its NextGen platform. The Company’s growth is a direct result of the differentiated software it provides to over 400 financial institution clients. We will continue to support the management team’s goal to enhance the platform’s capabilities through investments in product development and acquisitions.” said Arjun Thimmaya, Managing Director of Flexpoint. “By partnering together, we can support Baker Hill’s mission of helping banks and credit unions foster more profitable relationships with their customers and drive economic development in their communities,” added Vilas Nair, Principal of Flexpoint.
Flexpoint Ford is a private equity investment firm that is focused on the financial services and healthcare industries and has approximately $7.5 billion of regulatory assets under management. Given its experience investing in banks, regulated financial services, and financial technology, Flexpoint is well positioned to provide its portfolio companies with strategic support and operational best practices as they navigate the complexities of the financial services industry.
Raymond James served as lead financial advisor and Leonis Partners served as financial advisor to Baker Hill. William Blair served as exclusive financial advisor to Flexpoint Ford. Jones Day served as legal advisor to Baker Hill and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor to Flexpoint Ford.
Flexpoint Ford is a private equity investment firm that has approximately $7.5 billion of regulatory assets under management and specializes in privately negotiated investments in the financial services and healthcare industries. Since the firm’s formation in 2005, Flexpoint Ford has completed investments across a broad range of investment sizes, structures and asset classes. Flexpoint Ford has offices in Chicago, Illinois, and New York, New York. For more information, visit www.flexpointford.com.
Baker Hill is in the business of evolving loan origination by combining expertise in technology with expertise in banking. Built on decades of walking alongside banks and credit unions as they provide vital resources to their communities, Baker Hill NextGen® is a configurable, single platform SaaS solution for commercial, small business, consumer loan origination, and risk management that grows along with you as your business needs change. Baker Hill is lending evolved. For more information, visit www.bakerhill.com.
The Riverside Company is a global investment firm focused on being one of the leading private capital and credit options for investors, business owners and employees at the smaller end of the middle market by seeking to fuel transformative growth and create lasting value. Since its founding in 1988, Riverside has made more than 970 investments. The firm’s international private equity and flexible capital portfolios include more than 150 companies. For more information, visit www.riversidecompany.com.