Private Equity for MSP Acquisitions: Alpine Fund VIII Launches
Private Equity firm Alpine Investors has raised $2.25 billion, and a portion of that money has been earmarked for more MSP investments and acquisitions, ChannelE2E has confirmed.
Dig into the new Alpine Investors Fund VIII, and you’ll notice that it includes the formation of Evergreen II, a platform that acquires and grows managed services and government services, Alpine disclosed.
The Evergreen II dollars, in turn, are managed by Evergreen Services Group of San Francisco, California. Evergreen Services Group, which has been backing MSPs since around early 2018, has built a $200 million+ revenue business through 35 MSP acquisitions, the firm tells ChannelE2E.
Private Equity and Venture Capital for MSP Service Providers and Software Companies
Dozens of private equity firms now focus on the MSP market. The attraction involves monthly recurring revenues (MRR), generally predictable profits, aging business owners, and a highly fragmented market that’s primed for rollups and tuck-in deals.
Some of the new funds to watch include:
- Trinity Hunt Partners Fund VI, which raised $460 million. Trinity is well-known for IT services investments.
- Summit Partners Growth Equity Fund XI, which raised $8.35 billion. The firm’s existing investments include NinjaRMM and Red Canary.
- Thoma Bravo raised $22.8 billion in October 2020, and was preparing more funds as of mid-2021. Thoma Bravo already owns and/or backs multiple companies in the MSP-centric technology businesses. The investments span Barracuda, ConnectWise, N-able, Sophos and more.
Track all private equity firms acquiring MSPs here.