Guidepoint Security

Private Equity Manager (GP)

Case study

About the company

GuidePoint Security is a US-based global provider of consulting services to the public sector and commercial markets, focusing on management, technology and risk consulting.

The company is headquartered in Washington D.C. and employs more than 17,000 professionals in more than 55 locations globally. GuidePoint Security is led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies.

Investment rationale

• Complexity of the cybersecurity landscape is becoming more pronounced, with ever-evolving threats and thousands of products available to customers. Therefore, demand for cybersecurity services from organisations is set to grow.
• GuidePoint Security had the potential to scale rapidly via a buy-and-build strategy and organic growth.
• The business had a team of highly experienced cybersecurity practitioners and consultants with deep domain knowledge and expertise. They had developed a best practice approach to evaluating, selecting, implementing, managing and optimising cybersecurity solutions.

Private equity manager profile

• ABS Capital Partners (“ABS Capital”) provides growth equity capital to business-to-business (“B2B”) software and tech-enabled services businesses. The businesses are typically underpinned by strong technology and data and are looking to scale up with the right partners.
• The private equity manager has over 30 years of investment experience and has invested in approximately 130 companies across eight funds.

Our relationship

Pantheon has a long-established relationship with ABS Capital. It has made several primary and secondary investments in various ABS Capital funds and has also previously co-invested alongside the manager.

Active management and value creation

• ABS Capital accelerated the growth trajectory of GuidePoint Security by focusing on its organic growth and geographic expansion. This has broadened the client base across the USA and positioned it for international expansion. GuidePoint Security has more than 3,800 client organisations across the USA, including one third of the Fortune 50 and 40% of the Fortune 500, along with more than half of the US government cabinet-level agencies.
• ABS Capital joined GuidePoint Security’s board of directors. This has brought additional expertise and strategic guidance to the company.
• ABS Capital also recruited top executives with experience in building and leading finance teams for high-growth technology companies.
• ABS Capital has supported GuidePoint Security’s commitment to hiring top cybersecurity talent and investing in innovative service offerings to address new and emerging risks.

Exit

• In October 2023, GuidePoint received another round of funding from Audax Private Equity, a middle market investment firm. PIP took the opportunity to partially exit the investment at a money multiple of 5.7x and an internal rate of return (“IRR”) of 74%.

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