Leading Healthcare and Life Sciences Executive Search Firm Focused on Continued Growth

New State Capital Partners (“New State”) announced today that it has partnered with the employees of Klein Hersh (or the “Company”) to complete a recapitalization through an Employee Stock Ownership Plan (“ESOP”). The Company’s senior executives will remain in their leadership roles. New State will retain a stake in the Company in the form of structured equity and warrants. Additional terms of the transaction were not disclosed.

Klein Hersh is the country’s leading executive search firm serving the healthcare and life sciences industries. Founded in 1998 and based in Horsham, PA, the Company sources senior-level hires for some of the world’s foremost pharmaceutical, biotech, and healthcare companies.

Klein Hersh CEO Jason Hersh commented, “Our 48 employees have grown the number of executives we’ve placed more than 150%, and together with New State, have been instrumental in doubling EBITDA in the less than 18 months. As an executive search firm, people are our business, and giving our employees the opportunity to enjoy the benefits that come with ownership is the epitome of that ethos. We look forward to continuing our work with New State to build on our success.”

John Beauclair, Senior Principal at New State added, “We are excited to offer Klein Hersh’s employees a meaningful opportunity to share in the value they have helped create. The ESOP structure aligns with New State’s ESG goals, and we will continue to look for future opportunities to provide financing options that enhance employee ownership.”

New State first invested in the Company in November 2020.  This transaction is New State’s second ESOP, following the 2017 recapitalization of Gautier Steel Ltd., one of the nation’s leading producers of hot rolled carbon, alloy flats and sharp-cornered squares.

To assist with the extensive legal, financial, tax and governance expertise ESOPs require, New State and Klein Hersh engaged the following advisors: Morgan Lewis and Lex Nova for legal, Crowe for tax, Kroll for valuation, and Citizens for investment banking advisory. The financing was led by Star Mountain Capital, with debt advisory services from Piper Sandler.

About Klein Hersh

Klein Hersh is the country’s leading executive search firm focused exclusively on the healthcare and life sciences industries. Founded in 1998 and based in Horsham, PA, the Company delivers senior-level hires for some of the world’s foremost pharmaceutical, biotech and healthcare companies. Klein Hersh uses its relationships and deep subject matter expertise to match its clients with C-Suite executives. In addition, the Company offers consulting and contract staffing services to address temporary or cyclical needs, as well as specialized knowledge requirements. 

About New State Capital Partners

New State Capital Partners is an entrepreneurial-minded private equity firm that strives to be nimble, decisive, and cooperative. New State prides itself on a long-term outlook, approaching each potential investment as an opportunity to create lasting and valuable relationships with company founders and especially independent sponsors. The firm has the ability to invest up to $100 million in equity per transaction and seeks to invest in market-leading companies with $8 million to $40 million of EBITDA in the areas of business services, industrials, and consumer. New State and its affiliates have invested in more than 30 companies to date. For more information visit www.newstatecp.com.