How Bregal Sagemount helped a portfolio company scale faster and cut costs with Deel

A private equity-backed supply chain software company was under pressure to move faster, without increasing headcount or denting EBITDA. But rising vendor rates in traditional offshore markets pushed engineering costs over $7,000 per head, per month.

Standing up foreign entities wasn’t just time-consuming; it was a deal-breaker for the company’s lean operating model. The PE sponsor, Bregal Sagemount, needed a fast, compliant, and scalable solution that wouldn’t compromise the product roadmap.

Bregal Sagemount’s operating team, Growth Factors, launched a competitive RFP process, evaluating multiple Employer of Record (EOR) providers. Deel stood out on three critical dimensions:

• Direct-entity infrastructure: Deel owns its entities in 130+ countries, enabling stronger compliance, fewer delays, and full accountability—unlike competitors relying on third-party in-country partners.
• Cost efficiency: Deel’s blended EOR fee came in significantly lower than alternatives, unlocking meaningful savings from day one.
• Speed to hire: Deel guaranteed onboarding within 14 days of contract signature, essential for product continuity.

"During our due diligence, Deel's direct-entity model stood out immediately. It wasn't just about the significant cost savings; it was about mitigating risk and ensuring long-term compliance. We knew we were choosing a stable, strategic partner, not just a vendor."— Cole Fox, Operating Partner, Growth Factors

A phased shift with zero disruption

The company re-sourced its Development and QA roles to vetted talent in EMEA and LATAM, without setting up a single legal entity. Deel orchestrated the eight-week phased transition to ensure knowledge continuity, IP protection, and zero operational downtime. From onboarding to benefits, payroll, taxes, and compliance, Deel’s EOR solution handled it all, freeing internal teams to stay focused on delivery milestones.

"The transition was flawless. The phased approach Deel helped us make sure new team members were onboarded and productive in record time, which was a huge relief for my team."— VP of Engineering at Portfolio Company

Within the first year, the company unlocked more than $1.6 million in savings, cutting the average engineering cost per head by over 50% while expanding team capacity by 36%. Instead of sitting idle, these savings were reinvested directly into R&D and M&A, fuelling the company’s roadmap and accelerating its acquisition strategy.