Carlyle takes stake in AI-driven hiring firm in tech expansion
(Bloomberg) --Carlyle Group is taking a majority stake in a firm that uses AI as private equity shops ramp-up deals in the fast-growing technology sector.
Carlyle is backing HireVue, which deploys artificial intelligence to help companies make hiring decisions, according to the firms. Early investors including TCV, Granite Ventures and Sequoia Capital will remain as minority partners. Carlyle declined to disclose the value of the deal.
The investment is the latest in an area Carlyle considers core to its growth -- global technology, media and telecommunications. It has already committed $30 billion to the sector and this deal is being led by its Menlo Park, California-based growth team.
Carlyle is acquiring the stake through its $18.5 billion private equity fund at a time when buyout firms have been benefiting from an industrywide fundraising boom. That has helped the Washington-based company amass $223 billion in assets.
Carlyle has also invested in DiscoverOrg, which uses data to help companies drive their sales, marketing and recruiting efforts. Other firms are seeking to make more growth equity investments as well. Blackstone Group Inc. hired Jon Korngold in January to build and lead a new platform at the company focused on growth.
Based just south of Salt Lake City, HireVue clients have included Hilton Worldwide Holdings Inc., JPMorgan Chase & Co. and Delta Air Lines Inc. The company uses AI tools to assess and discover talent and has a video interviewing platform that is widely adopted.
HireVue is led by Chief Executive Officer Kevin Parker, the former CEO of project-management software maker Deltek Inc. HireVue’s board includes Matthew Miller, a partner at Sequoia Capital. Goldman Sachs Group Inc. was HireVue’s financial adviser for the transaction.