CVC provides debt for Palamon deal

Palamon’s acquisition was supported by a club led by CVC Credit Partners.

CVC Credit Partners has confirmed it provided a debt package to support private equity firm Palamon Capital’s acquisition of Thomas International.

CVC acted as majority lender on the club deal to support the primary acquisition. Terms of the deal and its equity and debt structure were not disclosed.

Thomas International was founded in 1981 and provides online personality, psychometric and aptitude testing for business clients. It measures and assesses behavioural preferences, emotional intelligence and leadership potential.

The firm is headquartered in the UK and has 81 offices globally with 75 percent of its sales coming from international markets. In 2017 it generated gross sales of £40 million and an EBITDA of £9 million.

Neale Broadhead, managing director and portfolio manager for CVC Credit Partners’ direct lending business, said: “Thomas Group has a solid product base which is well recognised within the psychometric assessment market. We believe this is an area that will continue to grow, given ongoing retention and engagement challenges, increasing hiring costs and a move to de-bias decision making and reduce recruitment costs.”