Francisco Partners has acquired a majority stake in Dynamo Software, a provider of configurable, cloud-based investment management software for the alternative asset investment industry. No financial terms were disclosed. Weil, Gotshal & Manges LLP advised Francisco Partners while Quayle Munro and DLA Piper advised Dynamo.
SAN FRANCISCO, CA and WATERTOWN, MA, October 2, 2017 – Dynamo Software (“Dynamo”), the premier provider of configurable, cloud-based investment management software for the alternative asset investment industry, today announced a majority investment from Francisco Partners, a global, technology-focused private equity firm. The investment will provide Dynamo with a capital partner to support the company’s continued growth and product innovation. Members of Dynamo management and employees will also retain significant ownership stakes in the company.
“We are extremely excited to announce this investment by Francisco Partners,” said Krassen Draganov, founder and CEO of Dynamo Software. “Thanks to their prior investments in the alternative asset management software market, they bring to bear highly relevant experience and are uniquely suited to help us accelerate our growth from here forward.”
In recent years, Dynamo has witnessed significant growth as alternative asset managers – including private equity, venture capital, real estate, and hedge funds along with institutional investors – have increasingly sought cloud-based solutions to manage their investment processes. Dynamo provides fund managers and limited partners with a configurable and modular solution that can be deployed across multiple sites and geographies. The company’s end-to-end platform allows its customers to automate workflows, enhance decision making, and manage heightened regulatory requirements.
“Dynamo serves a blue-chip list of over 400 customers who derive tremendous value from the software every day,” said Peter Christodoulo, Partner at Francisco Partners. “With its cloud-based solution, the Company is primed to become a leader in the alternative asset management software market.”
“Krassen and his team have built an impressive company and we are excited to partner with Dynamo to help take the business to the next level,” said Paul Wheeler, Operating Partner at Francisco Partners Consulting, “Francisco Partners is eager to further invest in the platform to ensure that Dynamo continues to deliver industry-leading technology to its current and future customers.” Wheeler previously served as the Chief Operating Officer of eFront and will be joining the Dynamo board of directors.
For this transaction, Francisco Partners was advised by Weil, Gotshal & Manges LLP. Dynamo Software was advised by Quayle Munro and DLA Piper. Debt financing was provided by Madison Capital. Terms of the deal were not disclosed.
About Dynamo Software
Dynamo Software, formerly Netage Solutions, has provided premium industry-specific, configurable investment management and reporting software for the global alternative assets industry since 1998, including fund administrators, endowments, pension funds, foundations, private equity and venture capital funds, real estate investment firms, hedge funds, prime brokers, funds of funds, and family offices. Intuitive and highly configurable, the Dynamo™ platform has improved the productivity of fundraising, deal, research, investor relationship, and portfolio management teams worldwide. Collectively, our 400+ clients manage over $3 trillion in assets.
About Francisco Partners
Francisco Partners is a leading global private equity firm, which specializes in investments in technology businesses. Since its launch over 17 years ago, Francisco Partners has raised over $10 billion in capital and invested in over 200 technology companies, making it one of the most active and longstanding investors in the technology industry. The firm invests in opportunities where its deep knowledge and operational expertise can help companies realize their full potential.