Who Owns Paylocity Company?

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Who Owns Paylocity?

Understanding a company's ownership is key to grasping its strategic direction and market influence. A significant leadership change occurred on August 5, 2024, with Steven R. Beauchamp moving to Executive Chairman and Toby Williams becoming the sole CEO.

Founded in 1997 by Steve Sarowitz in Illinois, the company, initially Ameripay Payroll Ltd., has grown into a leading provider of cloud-based human capital management solutions. Its goal is to simplify HR processes and boost efficiency for businesses.

As of July 23, 2025, the company boasts a market capitalization of $10.3 billion, with 55.2 million shares outstanding. In fiscal year 2024, it achieved over $1.4 billion in revenue, serving more than 39,000 clients. This analysis will trace the evolution of its ownership, from its founder's initial stake to its current public shareholder structure and recent trends, including insights from its Paylocity BCG Matrix.

Paylocity's journey began in 1997 when Steve Sarowitz founded the company as Ameripay Payroll Ltd. Sarowitz, recognized as the visionary behind the organization, established the company after accumulating experience in the payroll sector. While precise initial equity details are not public, Sarowitz held a substantial 44% stake at the time of the company's IPO in March 2014, which later adjusted to 28% by April 2019.

Founding Visionary

Steve Sarowitz founded Paylocity in 1997, bringing his experience from other payroll firms to establish the company.

Initial Public Offering Stake

At the time of its IPO in March 2014, founder Steve Sarowitz held a significant 44% ownership stake.

Post-IPO Ownership Adjustment

By April 2019, Steve Sarowitz's ownership stake in the company had decreased to 28%.

Early Institutional Investment

Adams Street Partners was a key early investor, providing $10 million in a Series A round and $27.3 million in a Series B round.

Total Early Funding

These initial funding rounds from Adams Street Partners totaled $37.3 million, supporting the company's early growth.

Sole Early Institutional Backer

Adams Street Partners is identified as the only institutional investor during these formative early stages of funding.

In its early stages, Paylocity secured crucial funding from institutional investors, with Adams Street Partners being a prominent early supporter. Their initial investment of $10 million occurred on May 16, 2008, during a Series A funding round. This was followed by a Series B round on June 30, 2012, where Adams Street Partners contributed an additional $27.3 million. These two rounds collectively provided $37.3 million in capital, with Adams Street Partners acting as the sole identified institutional investor during this period. Information regarding specific equity arrangements, such as vesting schedules or initial ownership disputes, from the company's founding period is not publicly disclosed. Understanding the Marketing Strategy of Paylocity can provide further context on how these early investments were leveraged for growth.

Founders and Early Investment

Steve Sarowitz founded Paylocity, initially holding a significant ownership stake that evolved over time. Early institutional backing was primarily provided by Adams Street Partners.

• Company founded as Ameripay Payroll Ltd. in 1997 by Steve Sarowitz.
• Steve Sarowitz held 44% of Paylocity at its March 2014 IPO.
• Sarowitz's stake reduced to 28% by April 2019.
• Adams Street Partners invested $10 million (Series A) and $27.3 million (Series B).
• Total early institutional funding amounted to $37.3 million.

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The ownership of Paylocity underwent a significant transformation with its initial public offering (IPO) in March 2014, raising approximately $120 million and commencing trading on Nasdaq under the ticker symbol PCTY. This event marked a pivotal shift from its earlier structure to a publicly traded entity.

As of August 2025, Paylocity's market capitalization reached approximately $10.02 billion USD, underscoring its growth as a public company. The current ownership landscape is heavily dominated by institutional investors and hedge funds, which collectively hold 94.76% of the company's stock as of July 29, 2025. This high level of institutional ownership signifies a broad distribution of shares among large financial entities, a common characteristic of publicly traded companies. Retail investors hold a smaller, though still significant, portion of approximately 29.73% of Paylocity's stock.

Major Institutional Stakeholders

Institutional investors play a dominant role in Paylocity's shareholder base, reflecting confidence in the company's market position and growth prospects. These entities manage large portfolios and often influence corporate governance.

• Vanguard Group Inc. held 4,312,832 shares as of March 31, 2025.
• T. Rowe Price Associates Inc. owned 4,287,514 shares as of March 31, 2025.
• BlackRock, Inc. possessed 4,116,617 shares as of March 31, 2025.
• Other significant holders include Wasatch Advisors Lp., State Street Corp., Invesco Ltd., Geode Capital Management LLC, and Citadel Advisors LLC.

The company's financial performance in fiscal year 2024, with total revenue of $1.4 billion, an increase of 19% year-over-year, and adjusted EBITDA of $505.6 million, highlights the positive impact of its ownership structure on its operational capabilities. The capital generated from the IPO and sustained by institutional investments has been instrumental in Paylocity's ability to enhance its product offerings and expand its market reach, contributing to its overall valuation and strategic direction. Understanding the Target Market of Paylocity is crucial for appreciating the company's growth trajectory and the stakeholders who benefit from it.

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The Board of Directors at Paylocity is instrumental in guiding the company's strategic path and safeguarding shareholder interests. Steve Sarowitz, the founder, remains a board member following his transition from Chairman on August 5, 2024. Steven R. Beauchamp, who moved to Executive Chairman on the same date, also holds a key board position.

As a publicly traded entity on Nasdaq under the ticker PCTY, Paylocity is generally understood to operate with a one-share-one-vote structure, absent any specific disclosures of dual-class shares or other preferential voting arrangements in its regulatory filings. Corporate insiders maintain a notable stake, with 21.91% of the company's stock held by them as of August 3, 2025. An example of insider activity includes SVP Andrew Cappotelli's sale of 1,717 shares on June 23, 2025, which represented a 12.56% reduction in his personal holdings. There is no public record of recent proxy disputes or significant activist investor involvement impacting Paylocity company structure.

Understanding Paylocity Ownership and Governance

Paylocity's ownership is primarily influenced by its public trading status and the holdings of its key executives and board members. Understanding who owns Paylocity provides insight into its corporate direction.

• Paylocity is a publicly traded company, making its stock ownership widely distributed.
• Corporate insiders, including executives and board members, hold a significant portion of Paylocity stock ownership.
• Steve Sarowitz, the founder, and Steven R. Beauchamp, Executive Chairman, are key figures in the company's leadership and governance.
• The company operates under a standard voting structure, typical for publicly traded entities.
• Information on Paylocity shareholder information can be found in its financial reporting.

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Over the past three to five years, Paylocity has experienced significant growth and strategic acquisitions, influencing its ownership landscape. Recent financial reports highlight a strong performance, with fiscal year 2024 revenues reaching $1.4 billion, a 19% increase year-over-year. For the second quarter of fiscal year 2025, the company reported total revenue of $377 million, marking a 16% rise from the previous year.

Strategic acquisitions have played a key role in Paylocity's recent developments. In September 2024, the company acquired Airbase Inc., a spending management software provider, for approximately $325 million. This move is anticipated to boost Paylocity's total revenue by about 1% in fiscal year 2025. Earlier, in December 2023, Paylocity integrated Trace, a headcount planning solution, into its offerings. The company has also actively returned capital to its shareholders, repurchasing around 1.8 million shares for approximately $300 million since May 2024, with an additional $200 million authorized for future repurchases. Leadership transitions occurred on August 5, 2024, with Steven R. Beauchamp moving to Executive Chairman and Toby Williams assuming the role of sole CEO, while founder Steve Sarowitz remains on the Board.

Acquisition of Airbase Inc.

The acquisition of Airbase Inc. for $325 million in September 2024 strengthens Paylocity's spending management capabilities. This strategic move is expected to contribute approximately 1% to the company's fiscal year 2025 revenue.

Shareholder Capital Return

Paylocity has demonstrated a commitment to returning value to shareholders. Since May 2024, the company has repurchased approximately 1.8 million shares for about $300 million, with $200 million remaining under its share repurchase program.

Leadership Evolution

As of August 5, 2024, the executive leadership saw a change with Steven R. Beauchamp transitioning to Executive Chairman. Toby Williams is now the sole CEO, indicating a shift in the company's leadership structure.

Institutional Investor Confidence

Institutional investors and hedge funds hold a significant portion of Paylocity's stock, with 94.76% ownership as of July 29, 2025. This high level of institutional backing reflects strong confidence in the company's long-term prospects and its Mission, Vision & Core Values of Paylocity.

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