Case Studies

Quad-C has partnered with dozens of owners and management teams to help build their companies through a combination of organic growth and strategic acquisitions.

INVESTING WITH A GROWTH ORIENTED MANAGEMENT TEAM

Founded in 1998, Document Technologies (“DTI” or the “Company”) (now Epiq Global) has become one of the largest independent providers of outsourced litigation support services, including facilities management (“FM”) services and electronic and paper discovery solutions. The Company, under the leadership of John Davenport, Jr., has grown its offering from traditional copy services to become a leading end-to-end provider of litigation support services serving most of the AMLAW 100 firms as well as general counsels of numerous Fortune 500 corporations. At the time of our exit, DTI had more than 100 FM customers in 35 major markets in the U.S., two dozen off-site legal production locations and had recently begun offering electronic discovery services. The Company had grown over a decade from a start-up to $100 million in revenue. At the time of our investment, Quad-C believed there was a significant opportunity to continue growing the business by expanding the electronic services component of the offering, introducing new products and services and expanding geographically. The Company founders and the other managers remained significant owners alongside Quad-C.

ABILITY TO CLOSE IN A TOUGH ENVIRONMENT

Quad-C invested in DTI in December 2008, completing the transaction despite the very difficult external environment. We were willing to close the transaction with 75% equity capitalization, as we believed the opportunity to grow the business substantially, not leverage, would create excess returns going forward. With the support of Quad-C, management executed on the value creation plan, which included:

  • Expanding electronic services

  • Introducing new services

  • Expanding geographically

  • Disciplined growth through acquisitions (completing 4 add-ons)

As a result, the Company grew sales significantly and expanded margins.

EXIT

Given the strong organic growth, accretive acquisitions, favorable shift in mix and resulting margin improvement, management exceeded its five-year forecast in less than three years. In November, 2011 Quad-C sold the Company to a private equity group.