Office address: 2000 Avenue of the Stars Suite 1050S, Los Angeles, CA 90067
Website: www.diversis.com
Year established: 2013
Company type: investment firm
Employees: 50+
Expertise: venture capital, private equity, finance, M&A, restructuring, tech-enabled services, capital markets, SaaS models, deal structuring, digital transformation, cross-border investments, strategic partnerships
Parent company: N/A
Key people: Kevin Ma and Ron Nayot (managing partners); Joseph Lok and Ryan Tanaka (principals); Ryan Chuang, Karen Hsu, and Dabir Rashid (VPs); Andrew Esquerra (senior associate)
Financing status: N/A
Diversis Capital, a Los Angeles-based private equity firm, specializes in strategic investments in software companies with reliable, recurring revenue models. The firm manages over $1.6 billion in assets and primarily targets lower middle-market companies that benefit from operational transformation. Diversis has over 50 staff across its operations in North America, Western Europe, and Australasia.
Diversis Capital was founded in 2013 by Kevin Ma and Ron Nayot, driven by a vision to discover unique, under-the-radar investment opportunities. The firm’s first notable acquisition was BLUE Software in 2014, marking a pivotal achievement by successfully partnering with management and leading the business transformation. Starting as a fundless sponsor, they demonstrated the firm’s value in complex situations, managing diverse investors while navigating challenging buyout processes.
In 2018, they sold BLUE, solidifying their presence in software and tech. They have since continued the strategies that contributed to their success. By 2021, Diversis had exceeded $1 billion in managed assets, including raising $675 million for a second fund. In 2023, Diversis raised $200 million to expand Tempo, and by 2024, invested from a $680 million fund with $1 billion in capital.
Diversis Capital offers a range of services focused on driving operational and market growth for its portfolio companies. Key offerings include:
Diversis Capital prioritizes a select group of core companies, ensuring each receives dedicated guidance and resources. This strategy supports management teams in achieving sustainable growth and success.
Diversis Capital is stated to have a collaborative culture, maintaining a flat organizational structure where ideas from all team members are valued. The operations team comprises experienced professionals who emphasize listening and supporting good outcomes for the entire team. The company’s benefits include:
The firm seeks software businesses with reliable, recurring revenue streams and the potential for market leadership. They focus on accelerating growth through best practices and through strategic acquisitions.
Diversis Capital prioritizes companies primed for transformation, emphasizing partnership and growth, with additional focus areas such as:
Diversis Capital maintains a focused portfolio, dedicating resources to support each company’s growth and success. Collaboration and alignment are key to fostering effective partnerships with management teams. With roots in a family office, it values strong, cooperative relationships throughout the investment journey.
Kevin Ma is Diversis Capital’s co-founder and managing partner, also serving as chair of InductiveHealth and other companies. He has a background in private equity at BCG, and various investment and operational roles, contributing expertise in transactions and operational transformation. Ma earned dual degrees in management from Wharton and electrical engineering from the University of Pennsylvania.
Ron Nayot serves as co-founder and managing partner, also chairing SalesRabbit and other boards. With over a decade of experience in corporate finance and M&A, including roles at the Gores Group and American Capital, he brings expertise in negotiation and valuation. Nayot graduated with honors in engineering science, specializing in mechanical engineering, from the University of Western Ontario.
The Diversis Capital team includes experienced professionals who play critical roles across transactions and portfolio management
In July 2024, Diversis Capital acquired Infotech, enhancing their infrastructure technology portfolio with proven expertise in supporting growth. This investment will allow Infotech to advance its product offerings to meet industry demands. Diversis expects this partnership to boost innovation and expand Infotech’s reach across state and engineering markets.
The company’s recent investment in Decision Lens further demonstrates their commitment to transformative software in government planning and prioritization. By supporting Decision Lens, Diversis aids modernization efforts in public sector planning and resource management. Diversis Capital is a key player in driving essential advancements in public and infrastructure technology solutions.
