Monday, February 24, 2014

Charlotte private equity firms 'swap' positions in company

Charlotte's Frontier Capital announced Monday that it has exited its five-plus-year investment in a Birmingham software-as-a-service company. Stepping in: Charlotte-based Pamlico Capital.

Frontier made a $10 million equity investment in Daxko Inc. in December 2008. Daxko provides software services to nonprofits.

The company used the money to expand its sales, marketing and product development, and now supports half of the YMCAs in the U.S., along with other groups. Daxko had a "record" 2013, the company said.

Frontier exited the investment Friday. Terms of the deal were not disclosed.

But Charlotte private equity firm Pamlico Capital said Monday that it has taken a controlling stake in Daxko. The size of the investment was not disclosed. It's the third deal in Pamlico's third fund, which as $650 million in commitments.

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