Bow River Capital's Software Growth Equity Team Announces Strategic Recapitalization in HRSoft, the Global Leader in Cloud-Based Compensation Management, to Gryphon Investors

This Transaction Represents the First Major Liquidity Event in the 2023 Vintage SGE Fund II

DENVER, March 3, 2026 /PRNewswire/ -- Bow River Capital's Software Growth Equity Team ("SGE") announced that it has closed on a majority investment transaction in HRSoft with Gryphon Investors, a blue-chip private equity firm focused on traditional buyouts, buy and builds, and growth buyout investments. Today, HRSoft, a global leader in Compensation Management, serves hundreds of the world's largest companies.

Bow River Capital's SGE team acquired a majority stake in HRSoft in the third quarter of 2022. Following the execution of multiple transformative maneuvers, the company grew by ~350%. In conjunction with the hiring of CEO Joe Poxson and key business leaders to manage the company's global scale, the team focused on delivering new AI and industry verticalized product innovations to market, leveling-up its operational infrastructure, and accelerating growth as it secured numerous global 500 companies as customers.

John Raeder, Partner and Head of Software Investments for Bow River Capital, stated, "We initially discovered HRSoft in 2019, and during our 3+ year hold period, we helped build and scale this cloud-based SaaS firm into the dominant, global compensation management market leader." John further stated, "We are looking forward to our partnership with Jon Cheek and his operational partners at Gryphon Investors, whom we have developed an outstanding relationship with over many years, and are looking forward to an extraordinary next chapter of growth with Joe Poxson and the HRSoft team." 

Joe Poxson, CEO of HRSoft stated, "HRSoft's market-leading cloud platform underpins an innovative complex compensation system designed to address ever-changing compensation models, legislation, and compliance requirements globally." Joe further said, "We want to profusely thank our Board of Directors – John Raeder, Maitlan Cramer, Sean O'Connell, and Dave Walters – for a highly productive and successful partnership. We look forward to joining forces with Gryphon Investors and building upon our robust momentum."

Maitlan Cramer, Managing Director at Bow River Capital stated, "HRSoft has established itself as a trusted partner to enterprises navigating increasingly complex compensation environments." Maitlan went on to say, "HRSoft's flexible, low-code architecture, deep domain expertise, and strong customer relationships position the Company exceptionally well to address these evolving demands. We have rolled a meaningful investment back into HRSoft, and are excited to partner with the Gryphon team to further accelerate product innovation, scale go-to-market capabilities, and support the Company's global strategy."

The newly formed Board of Directors will include Maitlan Cramer, Managing Director with Bow River's SGE team.

Full-service investment firm D.A. Davidson provided investment banking expertise throughout the HRSoft transaction. Holland & Hart LLP served as legal counsel to HRSoft.

About Bow River Capital

Bow River Capital is a private alternative asset company based in Denver, Colorado, focused on investing in the lower middle market in three asset classes including private credit, private equity and real estate. Collectively, the Bow River Capital team has deployed capital into diverse industries, asset classes and across the capital structure.

For more information, please visit www.BowRiverCapital.com

Media Contact:
Ashley Dzaman, Bow River Capital
303-861-8466

About HRSoft

HRSoft is a leading provider of compensation management software that helps enterprises design, manage, and optimize complex pay programs. Founded more than 20 years ago and headquartered in Denver, Colorado, HRSoft enables organizations to automate compensation workflows, improve governance, and ensure compliance and auditability across even the most customized and exception-heavy compensation structures. The Company has an unmatched portfolio of compensation-focused solutions designed to simplify and optimize intricate high-stakes compensation programs including merit, bonus, equity, and carried interest plans. With a steadfast commitment to innovation, HRSoft empowers organizations to leverage advanced technologies that drive performance and enhance their competitive advantage. Learn more at www.hrsoft.com.

About Gryphon Investors

Gryphon Investors is a leading middle-market private investment firm focused on growing competitively-advantaged companies in the Business Services, Consumer, Healthcare, Industrial Growth, Software, and Technology Solutions & Services sectors. With more than $10 billion of assets under management, Gryphon prioritizes investments in which it can form strong partnerships with founders, owners, and management teams to accelerate the building of leading, high-quality companies and generate enduring value through its integrated deal and operations business model. Gryphon's highly-differentiated model integrates since 1999 its well-proven Operations Resources Group, which is led by full-time, Gryphon senior operating executives with general management, artificial intelligence, human capital acquisition and development, acquisition due diligence and integration planning, treasury, finance, and accounting expertise. Gryphon's three core investment strategies include its Flagship, Heritage, and Junior Capital strategies, each with dedicated funds of capital. The Flagship and Heritage strategies target equity investments of $50 million to $500 million per portfolio company. The Junior Capital strategy targets investments of $10 million to $25 million in junior securities of credit facilities, arranged by leading middle-market lenders, in both Gryphon-controlled companies, as well as in other private equity-backed companies operating in Gryphon's targeted investment sectors.

SOURCE Bow River Capital