Newport Beach, California-based investment firm L Squared Capital Partners is leading the recapitalisation of Literacy Resources, which trades as Heggerty, an early childhood literacy solutions provider offering a suite of phonemic and phonological awareness solutions.
Longview Asset Management and the existing Heggerty shareholders – Pondera Holdings and Heggerty’s executive team – contributed equity for the transaction.
Vernon Hills, Illinois-headquartered Heggerty offers products in print and digital modalities used by more than 250,000 educators from early pre-K to 5th grade, including digital video content, digital assessment and screening tools, intervention curriculum, and decodable readers.
Randall Hunt, partner at L Squared, said: “Heggerty has differentiated itself by offering efficacious and engaging literacy solutions to the marketplace. The affinity with educators – both teachers and administrators – speaks volumes about Heggerty’s unique ability to address one of the largest challenges facing the education sector today.”
Andrew Follett, Heggerty’s chief executive, commented: I’m thrilled to partner with L Squared to accelerate Heggerty’s mission. The L Squared team brings a long track record of success in the education sector and together we’re committed to maximising the impact that Heggerty will have on student reading proficiency in North America and beyond.”
L Squared executive partners Ron Davies and Kai-lee Berke are joining Heggerty’s board of advisors.
BMO Sponsor Finance and New Canaan Funding led the debt financing to support the recapitalisation. William Blair was an advisor to L Squared and White & Case was legal counsel. Macquarie Capital advised Heggerty on the transaction and Reed Smith was legal counsel.
Date published: 30 September 2021