{"id":265,"date":"2018-03-09T20:39:31","date_gmt":"2018-03-09T20:39:31","guid":{"rendered":"http:\/\/www.originatemoredeals.com\/?p=265"},"modified":"2018-03-21T00:45:36","modified_gmt":"2018-03-21T00:45:36","slug":"who-are-the-top-middle-market-software-investors","status":"publish","type":"post","link":"https:\/\/www.originatemoredeals.com\/index.php\/2018\/03\/09\/who-are-the-top-middle-market-software-investors\/","title":{"rendered":"Who Are the Top Middle Market Software Investors?"},"content":{"rendered":"

\"\"Software companies have become an increasingly attractive investment choice over the last few decades. This is largely thanks to the rise of SaaS (software-as-a-service). The SaaS model has enabled promising small- to mid-market software firms to lower costs, scale more easily, and iterate quickly<\/a>.<\/p>\n

Needless to say, big bucks can be made by investing in a growing software company. Let\u2019s take a look at the top middle market software investors today:<\/p>\n

Inverness Graham<\/h3>\n

A private equity firm, Inverness Graham<\/a> specializes in recapitalizations, acquisitions, and leveraged buyouts. They\u2019re a major middle market software investor, with current holdings in companies like GPSTrackIt, a fleet management software solution, and Spirion, a leader in enterprise data management solutions.<\/p>\n

Inverness Graham was also an early investor in many software companies that have achieved successful buyouts. In 2016, for instance, Global ID Group, a food safety and quality solutions provider, was acquired by Paine & Partners, LLC<\/a>.<\/p>\n

Parallax<\/h3>\n

Founded in 1999, Parallax<\/a> makes control equity investments in lower middle market software and tech companies. Their current portfolio<\/a> features a range of exciting software firms, such as Quark Software Inc, a content automation platform, and Centercode, a provider of beta test management solutions.<\/p>\n

Parallax has made investments in numerous companies that have recently been acquired by larger firms. In late 2017, Fox Technologies, a leading provider of security and access control software, was acquired by HelpSystems<\/a>.<\/p>\n

Serent Capital<\/h3>\n

Serent Capital<\/a> was established in 2008 and is a private equity firm focused on making investments in growing, profitable businesses. Software companies make up a good portion of the firm\u2019s portfolio<\/a>, with current investments in great businesses like TalentWave, a leading provider of contractor compliance and contingent workforce management solutions, and Docutech, a dynamic document generator.<\/p>\n

Serent Capital has made many lucrative investments in software companies over the years, overseeing many successful exits. For example, in late 2016, DiamondMind, a provider of payment processing software for independent schools, was bought by Education Brands<\/a>.<\/p>\n

K1 Investment Management<\/h3>\n

A private equity and venture capital firm, K1<\/a> prefers to invest in enterprise software and services. They work to add value to their companies by helping organizations with leadership development, performance improvement, and revenue acceleration.<\/p>\n

K1 has been increasingly active in the investment space. In December 2017, they led a $6.5 million Series A funding round for IronScales<\/a>, the world\u2019s first automated phishing prevention provider. In July 2017, K1 sold ChiroTouch to Waud Capital Partners<\/a>, a chiropractic software company, after helping the firm increase revenue by a factor of 5x in three years.<\/p>\n

Spotlight Equity Partners<\/h3>\n

Spotlight<\/a> specializes in acquiring privately-held software companies in North America. They deploy between $5 to $50 million per deal<\/a>.<\/p>\n

Spotlight has completed 10 transactions with software businesses<\/a> to date. These include explosive companies like iCongo, an omnichannel commerce solution, and Sunquest Information Solutions, a healthcare diagnostics solutions provider. Look for more smart investments in years to come from this rising middle market software investor.<\/p>\n

Alpine Investors<\/h3>\n

Alpine Investors has nearly $1.5 billion assets under management<\/a> across a range of industries, including software-driven businesses. Their portfolio is full of a diverse array of SaaS companies, such as MinuteMenu (childcare software), Bill4Time (invoicing software), and Avitru (construction specification software).<\/p>\n

What\u2019s perhaps most unique about Alpine Investors is that how they don\u2019t just provide capital to companies, but also work to enhance leadership and build a great company culture. This \u201dpeople first\u201d strategy<\/a> helps deliver better returns. For instance, through their CEO-in-residence (CIR) program, one where Alpine finds fresh leadership for growing businesses, they\u2019re able to achieve great ROI. CIR-run companies have brought Alpine an average revenue growth of over 200% over the life of the partnership.<\/p>\n

The road ahead for middle market software investors<\/h3>\n

Software is the ultimate business model today. Spending on enterprise software continues to increase at nearly 10% per year<\/a>. The future looks bright for these private equity firms, as they\u2019ve established a strong position in a steadily growing sector. We\u2019ll see what new players emerge in the coming years, and the types of investments that will get them to the top.<\/p>\n","protected":false},"excerpt":{"rendered":"

Software companies have become an increasingly attractive investment choice over the last few decades. This is largely thanks to the rise of SaaS (software-as-a-service). The SaaS model has enabled promising small- to mid-market software firms to lower costs, scale more easily, and iterate quickly. Needless to say, big bucks can be made by investing in […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-265","post","type-post","status-publish","format-standard","category-uncategorized","entry"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p8gb0U-4h","jetpack-related-posts":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.originatemoredeals.com\/index.php\/wp-json\/wp\/v2\/posts\/265","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.originatemoredeals.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.originatemoredeals.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.originatemoredeals.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.originatemoredeals.com\/index.php\/wp-json\/wp\/v2\/comments?post=265"}],"version-history":[{"count":2,"href":"https:\/\/www.originatemoredeals.com\/index.php\/wp-json\/wp\/v2\/posts\/265\/revisions"}],"predecessor-version":[{"id":270,"href":"https:\/\/www.originatemoredeals.com\/index.php\/wp-json\/wp\/v2\/posts\/265\/revisions\/270"}],"wp:attachment":[{"href":"https:\/\/www.originatemoredeals.com\/index.php\/wp-json\/wp\/v2\/media?parent=265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.originatemoredeals.com\/index.php\/wp-json\/wp\/v2\/categories?post=265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.originatemoredeals.com\/index.php\/wp-json\/wp\/v2\/tags?post=265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}