Congruity Adds Industry Veteran Mike Maseda as Executive Chairman

KERNERSVILLE, N.C., Feb. 25, 2021 (GLOBE NEWSWIRE) -- RFE Investment Partners, a Connecticut-based private equity firm, in partnership with Weave Growth, announced today that they completed a recapitalization investment in Congruity HR, a professional employer organization (PEO) that provides HR outsourcing solutions to small and mid-sized businesses (“SMBs”) across the U.S. The company will continue to operate as Congruity HR led by Darrin Hunter, the founder, and the same management team who will remain a significant part of the ownership structure.

“We are excited about this partnership and the opportunity to accelerate our growth trajectory,” Hunter said. “RFE’s resources, track record, and history of partnering constructively with management made them a perfect partner for us.”

Mike Maseda, who has scaled two large platforms in the PEO industry, has joined the team as the Executive Chairman of Congruity Group Inc., the parent company of Congruity HR. The holding company will look to invest in other regional PEO brands and operators.

“We are big believers that regional PEOs are often better partners to and have stronger relationships with SMBs compared to larger players in the space,” Maseda said. “Our intent is to preserve the value of partnering brands, leadership, and client service teams and supplement them with the advantages of scale, enabling technologies, and best practices.”

Congruity HR CFO Keith Reeves, a founder of CBIZ, a successful Business Services aggregator, adds: “In my past, I have executed on the same multi-brand growth model with tremendous success. We understand the power of existing relationships and trust tied to legacy brands and people.”  

As a value-add co-investor, Weave Growth Partners, with deep roots in Silicon Valley and MIT, will be integral in leveraging data analytics and automation to bolster sales and enhance the client experience. This tech-enabled backbone will serve as a competitive advantage for regional PEO partners as the platform scales.

Based in North Carolina, Congruity HR PEO was founded in 2011 by Darrin Hunter, who remains as CEO of the operating company. The firm works with brokers and agents creating a partnership that translates to added value for their mutual clients. This innovative business model fueled the company’s expansion, resulting in Congruity HR being named one of the fastest-growing private companies on Inc. Magazine’s annual “Inc. 5000” list.

“Congruity’s ability to consistently grow year over year, while providing industry leading service levels and continuing to expand across geographies, was a clear differentiator,” said Paul Schilpp, Managing Director of RFE. “We believe that with the team we have assembled at the operating business as well as the Congruity Group Holding company level, the platform is in an excellent position to begin assembling additional brands, service lines, and regions.”

About Congruity HR PEO
Congruity HR PEO delivers comprehensive HR solutions to small and mid-sized businesses nationwide, sharpening their competitive advantage. Comprised of respected industry executives and certified HR professionals, Congruity HR provides hands-on, expert human resource services to reduce administrative burdens, ensure compliance with employer regulations, and effectively manage employment cost. The company’s extensive HR service offering includes a full range of health and workers’ compensation insurance products, tax administration, risk management services, and advanced technology.

About RFE Investment Partners
Founded in 1979, RFE Investment Partners is a Connecticut-based private equity firm that makes investments into lower middle market companies and then works collaboratively with management to identify actionable channels of growth, both organically and through add-on acquisitions. Management will also have access to a network of operations and human capital resources that are available to support the team throughout the investment lifecycle. The firm is currently investing out of its ninth fund, RFE Investment Partners IX, L.P.

About Weave Growth Partners
Weave Growth Partners is a private investment firm based in Silicon Valley, founded by experienced investors, entrepreneurs, and operators. Weave partners with management teams of profitable, middle-market businesses to bring a technology-enabled playbook of analytics and automation to transform their operations.

Media Contact: John Mooney, (908) 720-6057, john@overthemoonpr.com