Foundation Source

The Story

Foundation Source is the comprehensive, outsourced provider of back office functions and services for private foundations. The company leverages proprietary client-facing and back-end software to enable user-friendly charity research and grant making as well as a team of industry experts to manage compliance and regulatory filings and other administrative matters.

Transaction Dynamics

Incline partnered with management to acquire the company from a broad shareholder base led by two institutional investors. Management made an investment in the company as part of the transaction and will continue working with the Incline team to guide Foundation Source into its next stage of growth.

Investment Thesis

  • Industry’s only one-stop solution for Private Foundation back office needs
  • Diverse, stable customer base with high retention due to relationship focus and strength of value proposition
  • Cycle-resistant revenue profile supported by recurring, contractual customer agreements, with the majority of revenue coming from fixed fees
  • Multiple levers for growth including further penetrating the market of existing foundations, capturing share in the significant corporate philanthropy market, investing in furthering channel partner relationships and developing or acquiring new product and service offerings

Incline Value Enhancement

  • Develop data-driven sales strategy for corporate and other existing foundations as well as channel partner relationships
  • Support operational improvements by streamlining processes
  • Develop or acquire new capabilities such as corporate giving and scholarship administration

Headquarters

Fairfield, CT

Industry

Business Services

Investment Date

January 2020

Status

Active

Fund

IV

As the leading provider of comprehensive foundation management solutions and an industry pioneer, we are excited to partner with Incline in this next iteration of the firm’s evolution. We will continue, as always, to deliver service excellence to our clients, and this new partnership enables us to further penetrate our current market and expand into new ones. Susan Friedlander Calzone, Chief Executive Officer

Please read our Regulatory Information

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