Cloud MSP Investor, Buyer Great Hill Partners Raises $2.5 Billion -

Great Hill Partners, a private equity firm that has frequently acquired, built and sold managed services providers (MSPs), cloud and other technology companies, has raised $2.5 billion for its latest fund.

Similar to Great Hill Partners' prior funds, the new Fund VII will seek opportunities to finance the acquisition, recapitalization, or expansion of rapidly growing middle market companies, the private equity firm says.

Private Equity and MSPs: Example Deals

Great Hill Partners has extensive experience in the MSP and CSP markets. Key investments ahead of this fund have included:

Mission, a Top 100 Public Cloud MSP.

Evolve IP, a CSP that has done multiple MSP and CSP tuck-in deals.

Ascenty, which was ultimately sold to Digital Realty for $1.8 billion.

Of course, Great Hill Partners could target a range of different companies for its latest fund. Typical B2B and B2C targets have involved such sectors as software, financial and healthcare technology, digital media, eCommerce, and internet infrastructure. Typical Great Hill investments range from $40 million to $250 million.

Financial commitments to the latest fund were secured from a broad mix of U.S. and international investors including public and private pensions, sovereign wealth funds, endowments and foundations, insurance companies, healthcare systems, institutional fund managers, family offices, and high net worth individuals, the private equity firm said.

Numerous private equity firms now focus on the MSP industry -- seeking IT services, software and technology providers for potential investment deals.