Palladium Leads Remasas Quisqueyana Buyout

Palladium Equity Partners has sponsored a management-led buyout of Remasas Quisqueyana Inc., a New York-based provider of money transfers and other services largely to Hispanic customers. No financial terms were disclosed. Other equity participants included Baird Venture Partners, Adams Street Partners, Sewanee Ventures and company management.

 

PRESS RELEASE

Palladium Equity Partners, LLC (“Palladium”), a New York-based private equity firm, announced today that it has teamed up with a management-led acquisition group and other co-investors to acquire Remesas Quisqueyana, Inc. and Affiliates (“RQI” or the “Company”), a family-owned and operated company that offers money transfers and other services largely to Hispanic customers. The transaction terms were not disclosed.

 

Headquartered in New York City, RQI is a leading provider of electronic funds transfer services from a base of approximately 600 agents and 27 company-owned branch stores, with capabilities of sending money to 48 countries through 18,000 payout locations. RQI provides a low cost, consumer-friendly approach to this large and growing market consisting of tens of millions of customers around the world. In addition to the core remittance service via PC terminal, phone or online, the Company offers ancillary products, including discount and prepaid telecom cards, travel services, tax preparation services and package delivery services. RQI was founded in the 1980s and has maintained a leadership position in the Dominican Republic market and is expanding into other Latin American markets.

 

David Perez, a Managing Director of Palladium Equity Partners, said, “This platform acquisition is attractive due to its solid reputation, strong compliance program, scalable IT platform and its large and diverse payer and agent network. We are very pleased to be partnering with Mario Trujillo, Joe Venezia and Eduardo Villalobos, a proven Hispanic management team with a track record of success in acquiring and growing money transfer businesses, as we pursue new growth and acquisition opportunities to widen the scope of RQI's business.”

 

Mario Trujillo, Chief Executive Officer of RQI, stated, “RQI provides our group with a tremendous platform to build one of the premier companies serving the Latin American and Caribbean electronic funds transfer markets and to develop one of the largest global funds transfer businesses in the U.S. and Europe. The combination of this outstanding business platform, our experienced management team and the terrific group of strategic and financial partners including Palladium, Baird, Adams and Sewanee will allow us to expand RQI's footprint. We look forward to bringing our experienced management to accelerate RQI's business expansion, international growth and creating shareholder value, while further enhancing the Company's market position.”

 

According to the Inter-American Development Bank, the worldwide market for remittances exceeded $200 billion in 2007. Remittances to the Latin America and Caribbean region constitute the largest segment of this worldwide market and are expected to exceed $70 billion by 2009.

 

The management team, led by CEO Mario Trujillo, has been focused on investing in companies in transaction processing, business services, communication sectors and the unbanked prior to entering into the agreement to purchase RQI. Mr. Trujillo has extensive experience within the financial services/payment industry and has participated in businesses serving the Latino community since 1982.

 

Palladium served as the lead investor for this transaction, which includes equity funds Baird Venture Partners, Adams Street Partners and Sewanee Ventures. Management made a significant equity investment through Latinvest Management Company II, LLC. As part of the transaction, David Perez and Erik Scott of Palladium and Devin Mathews of Baird will join Mario Trujillo and Joe Venezia on RQI's Board of Directors.

 

About RQI

RQI is a leading provider of electronic fund transfer services from a base of approximately 600 agents and 27 company-owned branch stores, with capabilities of sending money to 48 countries through 18,000 payout locations. Headquartered in New York City, the Company currently operates in New York, New Jersey, Florida, Massachusetts, Connecticut, Maryland, Illinois, Texas, Ohio, Virginia, Georgia, Alaska, New Hampshire, Rhode Island, Arkansas, Washington DC, Puerto Rico, the U.S. Virgin Islands and Canada. In addition to the core remittance service via PC terminal, phone or online, the Company offers ancillary products, including discount and prepaid telecom cards, travel services, tax preparation services and package delivery services.

 

About Palladium Equity Partners

Palladium Equity Partners, LLC (www.palladiumequity.com) is an investment firm targeting companies in financial and business services, consumer/retail, food/restaurants, healthcare, manufacturing and media. Palladium has a focus on companies that are well-positioned to capitalize on the fast-growing U.S. Hispanic market. The principals of Palladium have invested over $2.5 billion of equity in more than 60 portfolio companies over the last two decades. Formed in 1997, Palladium currently has approximately $1 billion of capital under management.

 

About Baird Venture Partners

Baird Venture Partners, the U.S.-based venture capital fund of Baird Private Equity, makes venture capital investments in early and expansion stage business services and healthcare/life sciences companies. Baird Venture Partners leverages its in-depth sector knowledge, experienced investment team and network of relationships to serve as a value-added partner for its portfolio companies. For more information, please visit www.bairdventurepartners.com

 

About Adams Street Partners, LLC

Adams Street Partners (www.adamstreetpartners.com) has been making investments in private equity since 1972 and is also credited with establishing the industry's first institutional private equity fund of funds in 1979. Adams Street Partners has made over 140 investments with the objective of backing experienced management teams focused on high-growth markets. Investments are made primarily in companies in the technology, life sciences and technology-enabled services sectors. Adams Street Partners currently manages $16.5 billion and has offices in Chicago, Menlo Park, London and Singapore.

 

About Sewanee Ventures

Sewanee Ventures is a Nashville based venture capital and private equity firm focused on backing proven management teams in a variety of industries and investment stages. With approximately $100 million under management, Sewanee Ventures is currently investing its third fund, Sewanee Partners III, LP.