Partnership to Accelerate Product Innovation and AI-Driven Capabilities in Enterprise Compensation Management

Gryphon Investors (“Gryphon”), a San Francisco-based middle-market private investment firm, today announced it has completed a majority investment in HRSoft (“the Company”), a leading provider of enterprise compensation management software. Existing investor Bow River Capital will retain a minority stake, and the current executive team, led by Chief Executive Officer Joe Poxson, will continue to manage the business. Financial terms for the transaction were not disclosed.

Based in Denver, Colorado, HRSoft delivers a purpose-built, low-code compensation management platform that enables enterprises to administer complex merit, bonus, long-term incentive, variable pay, and carried interest programs. The platform integrates with leading HRIS systems, including UKG and Workday, and supports configurable compensation structures, workflows, and reporting requirements. Its architecture enables organizations to manage increasingly complex pay programs with control and auditability.

Demand for modern compensation solutions continues to grow as enterprises expand globally, implement multi-variable incentive frameworks, and navigate heightened regulatory and transparency expectations. Despite this complexity, many organizations continue to rely on inefficient manual workflows, creating operational risk and limiting visibility.

“We built HRSoft to bring structure, flexibility, and accountability to enterprise compensation. As organizations scale globally and compensation programs grow increasingly complex, that mission becomes even more critical,” said Mr. Poxson. “Gryphon’s partnership gives us the resources and expertise to accelerate innovation, expand our vertical capabilities, and scale our go-to-market efforts while staying grounded in the disciplined approach that has defined us from the beginning.”

Under Gryphon’s ownership, the Company will invest in continued product enhancement, expanded vertical capabilities, particularly within financial services, and scalable go-to-market infrastructure. The roadmap also includes the expansion of artificial intelligence to enhance configuration, plan design, and advanced modeling tools that reduce implementation time and enhance decision support.

“Compensation management requires both flexibility and control,” said Jon Cheek, Partner and Co-Head of Gryphon’s Software Group. “HRSoft has built a strong foundation designed around structured workflows and auditability. We see opportunity to build on that foundation through continued innovation, including practical AI-enabled capabilities that improve insight and efficiency without compromising accountability.”

“HRSoft has established itself as a trusted partner to enterprises navigating increasingly complex compensation environments,” said Maitlan Cramer, Managing Director at Bow River Capital. “HRSoft’s flexible, low-code architecture, deep domain expertise, and strong customer relationships position the Company exceptionally well to address these evolving demands. We are excited to partner with the Gryphon team to further accelerate product innovation, scale go-to-market capabilities, and support the Company’s next phase of growth.”

D.A. Davidson acted as financial advisor to HRSoft. Holland & Hart acted as legal advisor to HRSoft. Gibson Dunn acted as legal advisor to Gryphon, and Piper Sandler acted as financial advisor to Gryphon.

About HRSoft

HRSoft is a leading provider of compensation management software that helps enterprises design, manage, and optimize complex pay programs. 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.

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

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