Founded in 2010 to invest in and support high-growth potential companies in the southeast, Chattanooga Renaissance Fund (CRF) announced its exit of Nashville-based Inova Payroll. This marks CRF’s second successful exit following the acquisition of Quickcue by OpenTable in 2013.
Serving clients across the United States, Inova Payroll has grown from a payroll focused company to one offering comprehensive human capital management solutions. Part of its initial growth strategy was through its 2012 acquisition of Computerized Payroll Services (CPS), headquartered in Chattanooga. Since then, the company’s continued performance earned it a spot on the Inc. 5000 list of fastest growing companies in 2016 and 2017. Tritium Partners, a private equity firm located in Austin, Texas, completed a strategic merger between Inova Payroll and Atlanta-based Payroll Strategies to create a leading human capital management company in the southeast. The newly combined company will operate under the strength of the Inova Payroll brand and will be led by Inova Payroll’s founder Farsheed Ferdowsi.
Chattanooga Renaissance Fund exited its position in Inova Payroll with this transaction. “CRF in collaboration with the Tennessee Angel Fund (TAF) as well as other investor groups, was able to participate early in the growth of Inova Payroll,“ said David Belitz, managing partner of CRF. TAF is a statewide angel co-investment fund and is part of the TNInvestco Program. Founded in 2009, TNInvestco aimed to create jobs by increasing the flow of capital to innovative, early-stage Tennessee-based companies through its relationships with a cross section of venture capital funds in Tennessee. “These relationships across the state are critical. Working with other TN-based venture groups like TAF and Nashville Capital Network has bolstered CRF’s ability to better identify, engage, and exit early-stage companies and thus, drive stronger returns for investors,” said David Belitz.