2022 Year in Review: The RLH Perspective

While publicly traded stocks generally had a dismal year in 2022, RLH continued to help build outstanding enterprises that commanded robust valuations. Most notably, RLH and our portfolio company management teams enjoyed three excellent liquidity events in the past year. 

We recapitalized our portfolio company CrossCountry Consulting (CCC) in a transaction by which our investors received a compelling return on their capital, RLH reinvested in the go-forward CCC business, and RLH retained a portion of the pre-existing CCC business which now operates as CrossVue. The revenue run rate of the CCC business at the time of the recap was more than 2.5x the level at which RLH invested and well in excess of amounts originally forecast at the time of our investment, an achievement almost entirely attributable to organic growth. Notably, CCC also was a member of Glassdoor’s 2020 and 2021 lists of the Top 50 Best Small and Medium Sized Places to Work in the US. We congratulate CCC’s founders Dave Kay and Erik Linn as well as the entire CCC organization on their financial and cultural successes.

Our portfolio company Inspirage was acquired by Accenture (NYSE: ACN). Inspirage provides enterprise clients with transformative implementation solutions for Oracle’s cloud-based supply chain management software and related enterprise resource planning software. Through ongoing development of advanced expertise in that software, Inspirage earned repeated recognition by Gartner and Oracle as a leading implementation provider. With adoption of Oracle’s cloud supply chain software accelerating in 2022, Inspirage achieved outstanding year-over-year results: 50% growth in revenue and a more than doubling of EBITDA. We applaud CEO and co-founder Srini Subramanian and the global Inspirage team for their enduring commitment to, and success at, being the leading business in their marketplace.   

Like our portfolio companies, RLH believes in the impact of superior talent on organizational success. We were fortunate to add three such individuals to our team roster in 2022. We welcomed Sherrick Murdoff as a Strategic Advisor and associates Patrick Allen and Sam Merriam to our investment team.

We were also honored by Inc. for the second consecutive year as a Founder-Friendly Investor, an award that, according to Inc., recognizes firms that serve as a partner that entrepreneurs can trust and collaborate with, while receiving the financial and strategic support they need to help accelerate growth.

We look forward to welcoming more middle-market firms into our portfolio in 2023. Accordingly, we invite your referrals of entrepreneurial management teams that are building market-leading, high-growth, knowledge-based profitable businesses in the $30 – 150 million revenue range within the sectors of business services, healthcare, and government services. On behalf of the entire RLH team, we hope that 2023 is a good year for you and all the people who make your business endeavors successful!