Key Takeaways
- • Virent Capital made its first platform investment under its create-and-build strategy, backing higher education marketing firm Kanahoma.
- • Salem Investment Partners provided debt financing and co-invested alongside Virent; terms of the deal were not disclosed.
- • Kanahoma, a San Diego company founded in 2020 with nearly 50 full-time employees, supports more than 20 institutions with enrollment marketing services.
- • Chip Paucek, co-founder and former CEO of 2U, has joined Kanahoma's board as co-chairman, while founder and CEO Seth Odell retains a meaningful ownership stake alongside management.
Summary
Virent Capital, a Radnor, Pa.-based firm that backs founder-led businesses in the lower middle market, has made its first platform investment under its create-and-build strategy, backing Kanahoma, a higher education marketing firm. Salem Investment Partners provided debt financing and co-invested in the transaction. Terms were not disclosed. Kanahoma's management retains a meaningful ownership stake following the deal.
Kanahoma helps colleges and universities attract and enroll students. Its services span program strategy, brand positioning, paid media, web development, search optimization and prospective student engagement. The company was founded in 2020 by Seth Odell, a former higher education chief marketing officer who remains CEO. Based in San Diego, Kanahoma has nearly 50 full-time employees and supports more than 20 institutions.
The transaction also brings governance changes. Chip Paucek, co-founder and former CEO of 2U, has joined Kanahoma's board as co-chairman. Garnet Partners and Lippes Mathias advised Kanahoma on the transaction, while Troutman Pepper Locke advised Virent.
Connor McMahan, founder and managing partner of Virent Capital, said enrollment growth has become a strategic priority for institutions, a trend that underpins the investment thesis for Kanahoma's model.
Kanahoma helps colleges and universities attract and enroll students. Its services span program strategy, brand positioning, paid media, web development, search optimization and prospective student engagement. The company was founded in 2020 by Seth Odell, a former higher education chief marketing officer who remains CEO. Based in San Diego, Kanahoma has nearly 50 full-time employees and supports more than 20 institutions.
The transaction also brings governance changes. Chip Paucek, co-founder and former CEO of 2U, has joined Kanahoma's board as co-chairman. Garnet Partners and Lippes Mathias advised Kanahoma on the transaction, while Troutman Pepper Locke advised Virent.
Connor McMahan, founder and managing partner of Virent Capital, said enrollment growth has become a strategic priority for institutions, a trend that underpins the investment thesis for Kanahoma's model.
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