NEW YORK, Nov. 11, 2024 – Vialto Partners, a leading provider of global mobility, tax, and immigration solutions, has announced a significant financial boost to enhance its services and drive future innovation. The company has secured a $225 million equity investment as part of a strategic recapitalization, which will also reduce its outstanding debt by approximately $700 million. This transformative transaction positions Vialto Partners for accelerated growth and further strengthens its commitment to delivering exceptional solutions to clients worldwide.
The investment is led by Vialto Partners’ existing financial sponsor, Clayton, Dubilier & Rice (CD&R), and includes participation from certain existing lenders, including HPS Investment Partners (HPS). This financial restructuring not only injects substantial capital into Vialto but also creates a more sustainable financial foundation for the company. The infusion of funds will be strategically deployed to enhance Vialto Partners’ global platform, advance its technology offerings, and further develop its expert teams.
Neil Masterson, CEO of Vialto Partners, expressed enthusiasm about the transaction, stating, “The continued support and increased investment from CD&R and HPS are a strong endorsement of Vialto’s vision and market leadership. This agreement is a pivotal moment for Vialto Partners, fundamentally reshaping our capital structure to enable us to aggressively invest in integrated compliance, advisory solutions, and cutting-edge technologies.” Masterson emphasized that these investments are crucial for helping clients navigate the complexities of the global landscape and capitalize on emerging opportunities.
He further added, “Coupled with the operational efficiencies Vialto Partners has achieved, this new capital will empower us to intensify our focus on what matters most to our clients – seamless service delivered by top-tier global mobility professionals, powered by advanced technology and a comprehensive network spanning 180 countries.” This commitment underscores Vialto Partners’ dedication to providing unparalleled support to multinational corporations managing increasingly complex global workforce mobility challenges.
Transaction Highlights
The $225 million equity investment is central to a recapitalization agreement designed to significantly reduce Vialto Partners’ debt and fortify its balance sheet. The anticipated $700 million reduction in outstanding debt will provide Vialto with increased financial flexibility and substantial liquidity.
Furthermore, Vialto Partners has reached an agreement with select lenders to amend existing debt obligations. These amendments are designed to provide the company with even greater agility to pursue strategic growth initiatives and continue to enhance its best-in-class service offerings for its expanding client base.
Upon completion of the transaction, CD&R will maintain its position as the majority shareholder in Vialto Partners, while HPS Investment Partners will become a minority equity owner.
The recapitalization is expected to be finalized in the first quarter of 2025, pending the execution of final documentation, necessary regulatory approvals, and the satisfaction of standard closing conditions. Following the transaction’s completion, Vialto Partners anticipates undergoing a capital structure review and re-evaluation by credit rating agencies.
Vialto Partners was advised by Weil, Gotshal & Manges LLP (legal), Evercore Group L.L.C. (financial advisor), and AlixPartners LLP (operational advisor). CD&R received legal counsel from Debevoise & Plimpton LLP and Kirkland & Ellis LLP, and financial advice from Moelis & Company. HPS was advised by Paul, Weiss, Rifkind, Wharton & Garrison LLP (legal) and Houlihan Lokey (financial advisor). The First Lien Ad Hoc Group received legal advice from Davis Polk & Wardwell LLP and Ashurst LLP, with Guggenheim Securities, LLC serving as financial advisor.
About Vialto Partners
Vialto Partners is a trusted global leader specializing in providing comprehensive global mobility, tax, and immigration solutions to the world’s most prominent companies. As a strategic partner, Vialto Partners offers a suite of compliance, consulting, and technology-driven services to address the intricate challenges of managing a globally mobile workforce. The firm is dedicated to ensuring consistent and compliant global mobility experiences for both clients and their employees, leveraging cutting-edge technology and deep industry expertise. For more information about Vialto Partners and its services, please visit www.vialtopartners.com.
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