We advised Engage PEO and Lightyear Capital on the transaction

Davis Polk advised Engage PEO on its strategic partnership with Kohlberg & Company, LLC. As part of this transaction, Kohlberg will acquire a majority stake and partner with existing investor Lightyear Capital, and the Engage PEO management team, both of which will retain a minority investment. Financial terms of the transaction were not disclosed.

Engage PEO, with headquarters in Fort Lauderdale, Florida, is a market leading, national professional employer organization (PEO) licensed in all states with licensing requirements and serves clients in all 50 states. Engage PEO has a unique service delivery model where HR services are delivered by licensed attorneys and deploys a unique go-to-market strategy in which Engage partners with insurance brokers and agencies.

Lightyear Capital is a New York-based private equity firm that partners with growing companies at the nexus of financial services and technology, healthcare and business services. For over 20 years, Lightyear has worked closely with management and leveraged its industry expertise, network of advisers, and operating resources to accelerate growth and build market leading businesses.

Kohlberg is a leading U.S. middle market private equity firm based in Mount Kisco, New York. Over the firm’s 36-year history, the firm has organized 11 private equity vehicles totaling in aggregate over $14 billion.

The Davis Polk corporate team included partner Michael Davis and associates Ryan Olson and Austin Fuss. Partner Ethan R. Goldman and associate April Filtz provided tax advice. Partner Adam Kaminsky and counsel Joseph S. Brown provided executive compensation advice. Partner Pritesh P. Shah provided intellectual property advice. Members of the Davis Polk team are based in the New York and Washington DC offices.