Revenue Growth Propels Three Small-Market Providers Onto Inc. 5000

401kWire.com -- August 23, 2007 -- At least three small and micro-plan recordkeepers have seen enough revenue growth to catch the eye of Inc. magazine. The entrepreneur-focused publication just released its first "Inc. 5000" list of the 5,000 fastest growing privately held companies in the United States, and a couple of familiar 401(k) faces showed up.

Weighing in at number 683 was ePlan Services. The Denver-based, 26-employee private label plan specialist boasted 485.2 percent revenue growth from 2003 to 2006, reaching annual revenue last year of $4.5 million.

ePlan president and CEO Mark Gutrich could not immediately be reached for comment.

East Windsor, New Jersey-based ExpertPlan came in at 1,492 on the list, thanks to 241.6 percent growth in revenue from 2003 to 2006, reaching $7.8 million. As of July 10, the outsourced recordkeeper's 52 employees worked with $2.4 billion in assets in 6,200 plans with 93,000 participants accounts. And chief administrative officer Sid Garai expects to do even better on the next list.

"We are very proud to be listed so high in the Inc. 5000 listing and expect that we will rank even higher next year as a result of our recent leap to servicing the mid- and large-plan market segment," Garai stated.

The Online 401(k) also made it onto the list at number 3,190, thanks 98.7 percent revenue growth from 2003 to 2006. The San Francisco-based 31-employee online provider's revenue grew $2.4 million last year, and it currently works with approximately $350 million in assets for around 25,000 participants in 3,200 plans.

"There's a growing market, so we're not really taking market share from other providers," Online 401(k) CEO Chad Parks told The 401kWire in an interview, adding that the firm's YTD revenue this year is up 80 percent. "We're growing by expanding the market."

Inc. 5000 project manager Jim Malone explained that the rankings, released today online, are based on privately-held companies' revenue growth (as gleaned from submitted tax forms, audits and the like). Although Inc. has published its Inc. 500 list for 25 years, this is the first time the publication has expanded the list to 5,000.