FCP was founded in 2019 by Alex Klingelberger, a leading investment banker to emerging growth technology companies since 2003. FCP invests in differentiated, sub-scale enterprise technology companies with between $2mm and $6mm in revenue. FCP partners with institutional investors, family offices, and a network of entrepreneurial executives.
Broadcat crafts job aids and other tools that guide employees on what to do at the right moment, making it clear how compliance and ethics applies to regular job duties like financial approvals, hiring and firing, managing vendors, closing deals, and more.
TCS Healthcare Technologies (TCS) is the leading provider of population health software designed to support health plans, TPAs, ACOs and other risk-bearing organizations. The TCS team of US-based clinicians and developers are recognized for their best-in-class managed care expertise and customer support. TCS Healthcare Technologies is an HCAP Partners portfolio company.
Copyright © 2022 Featherweight Capital Partners. All rights reserved.
AUSTIN, TX (January 5, 2022)
2022-0105 FCP Investment in Broadcat
AUSTIN, TX (January 5, 2022) – Featherweight Capital Partners, an Austin-based independent sponsor, announced its acquisition of Broadcat LLC (“Broadcat”), the leading provider of innovative, behavior-based compliance content to cutting-edge legal and compliance teams. The transaction includes growth investment that will enable Broadcat to address rapidly increasing demand for its content and expand its service offering to provide broader compliance solutions based on Broadcat’s unique, operationally focused compliance design process. In conjunction with the transaction, the company announced that Alex Klingelberger, Managing Partner of Featherweight Capital Partners, will join Broadcat as Chief Executive Officer.
Broadcat is an industry-leading provider of corporate compliance content based on a behavioral science approach. Delivered through a subscription-based model, its unique and proprietary content is increasingly becoming the standard for role-based and operationalized compliance training. The company’s growth efforts are focused on expanding its content library and creating additional products and solutions responsive to the growing needs of its enterprise customers. Broadcat’s customers include globally renowned enterprises across all major industries, such as Uber, Hershey, Johnson & Johnson, Cisco, Kraft Heinz, Takeda, and Booking.com.
“The demand for Broadcat’s products really accelerated during 2021 because they address compliance challenges from a perspective that focuses on two critical areas: 1) creating solutions that mitigate the burgeoning workloads of compliance leaders; and 2) enabling compliance leaders to present content relevant to and aligned with business leaders,” commented Klingelberger. “We are excited to continue building upon Broadcat’s reputation as an innovator and thought leader in this industry.”
“We were looking for someone that really understood what made the brand unique and was as passionate about growing it as we were in establishing it,” said Ricardo Pellafone, Broadcat’s founder. “We found that, as well as a track record of success, in Alex.”
The acquisition of Broadcat represents the second completed independent sponsor transaction for FCP. The firm had previously partnered with institutional investors including HCAP Partners to acquire TCS Healthcare Technologies, a leading provider of case management and population health software to healthcare payers.
Debt financing for the acquisition of Broadcat was provided by Live Oak Bank in Wilmington, North Carolina. Live Oak had previously provided senior debt financing for the acquisition of TCS Healthcare Technologies by FCP. Michael Attaway and Ryan Ricke from Kane Russell Coleman Logan PC of Dallas, Texas provided lead legal counsel to FCP. Zach Jones of Vela Wood, PC served as transaction tax counsel. E78 Partners served as accounting advisor to FCP in the transaction. Megan Fooshee of Fooshee Business Law served as counsel to Broadcat LLC as it relates to the transaction. Securities were offered through Finalis Securities, LLC (Member FINRA/SIPC).
About Featherweight Capital Partners
Featherweight Capital Partners (“FCP”) is an independent private equity sponsor based in Austin, Texas. FCP is lead by Alex Klingelberger, a leading investment banker to emerging growth technology companies since 2003. FCP invests in differentiated, sub-scale enterprise technology companies with between $2mm and $6mm in revenue. For more information, please visit www.featherweightcapital.com.
At Broadcat, we take a behavioral approach to compliance communications and training. That means we try to work with how people actually are—busy, distracted, and overwhelmed with day-to-day tasks—not how we’d like them to be. We craft job aids and other tools that guide employees on what to do at the right moment, making it clear how compliance and ethics applies to regular job duties like financial approvals, hiring and firing, managing vendors, closing deals, and more. If you’re into the academic side of compliance, you might call our job aids “precommitment devices” or “accountability debiasing tools” or, if you’re the Temple Law Review, a “behavioral compliance best practice.” Broadcat is a portfolio company of Featherweight Capital Partners and is based in Dallas, Texas. For more information, please visit www.thebroadcat.com.
Wilmington, NC (June 10, 2021)
Wilmington, NC (November 9, 2019)