New PE Firm To Focus on IT-Enabled Biz Services
peHUB has learned that Jeff Rich, former CEO of Affiliated Computer Services (NYSE: ACS), and Todd Furniss, former president of the Everest Group, have partnered to form a new private equity firm focused on the IT-enabled business services sector. The Dallas-based effort is named PlumTree Partners, and will formally announce itself next week. PlumTree has not yet decided on whether it will raise a formal fund, operate as a fundless sponsor backed by local family offices or become an investment holding company for a large corporation that has expressed interest. In general, however, is wants to invest between $25 million and $50 million of equity per year, in around four deals. If PlumTree were to pursue the formal fund structure, that would work out to around a $250 million target. I’m pretty skeptical of most new PE firms in today’s environment, but this one certainly has big-name experience on its side. Rich began his career as an LBO banker for Citi in the 1980s, before getting recruited by ACS to be its CFO.
