Trinity Hunt Partners, a frequent investor in managed service providers (MSPs) and IT consulting firms, has raised $460 million for Fund VI -- which will focus on small-cap companies in business, healthcare and consumer services.
Trinity Hunt Partners, based in Dallas, Texas, has extensive MSP M&A and investment experience. The private equity firm's portfolio companies have also acquired cloud consulting partners focused on Amazon Web Services and Microsoft Dynamics 365, among other areas of expertise.
Example Trinity Hunt Partners investments and acquisitions include:
- August 2021: Digital services company Improving, backed by Trinity Hunt Partners, acquired Tahoe Partners -- a professional services firm that specializes in cloud and Microsoft digital transformation services.
- July 2021: Dataprise, a major midmarket MSP backed by Trinity Hunt Partners, acquired Wireless Watchdogs.
- June 2021: Argano, backed by Trinity Hunt Partners, acquired Microsoft Dynamics 365 Cloud Partner Arbela Technologies.
- May 2021: Trinity Hunt acquired and combined three companies -- Keste, interRel Consulting and United Virtualities (UV) -- to form Argano.
- August 2020: Improving Enterprises, a technology consulting company backed by Trinity Hunt Partners, acquired Object Partners, a custom software development firm and Amazon Web Services (AWS).
Private Equity Investment Criteria
Generally speaking, Trinity Hunt Partners targets U.S.-based companies with annual EBITDA (earnings before interest, taxes, depreciation and amortization) of between $4 million and $25 million, the company's website says.
When Trinity Hunt Partners finds an ideal target, the private equity firm will typically invest between $15 million and $50 million into each portfolio company -- with the ability to invest additional equity capital via co-investment from limited partners, the company's website adds.
Transaction types typically involve majority and significant minority recapitalizations, buy-and-builds, and management buyouts, the private equity firm notes.
Potential investments that interest the private equity firm, the company's website says, include:
- Founder-owned, family-owned, and closely held businesses
- Proven business model with a demonstrated track record of growth
- Strong competitive position and value proposition
- Significant recurring revenue base
- Strong margins and free cash flow generation
- Value creation opportunities
What Will Trinity Hunt Partners Invest In Next?
Admittedly, Trinity Hunt Partners faces plenty of investment competition. Indeed, dozens of private equity firms are making MSP acquisitions and investments, according to ChannelE2E's expansive list of M&A deals involving MSPs and IT service providers.
Also of note: Trinity Hunt Partners did not specifically say that the new Fund VI will involve MSP and IT consulting acquisitions. In a prepared statement, Managing Partner Blake Apel focused on investor demand and team talent -- rather than specific investment bets. He said:
“We are grateful for the strong demand for Fund VI which allowed us to raise the fund very quickly. The outcome is a testament to the impressive performance of our highly talented investment team, support team, and network of valued partners, which include portfolio company executives, lenders, buy side advisors, diligence providers, and value creation consultants. We collectively look forward to a bright future ahead as we invest Fund VI.”
Credit Suisse Securities (USA) LLC acted as Trinity Hunt’s private placement advisor and placement agent for Fund VI. Kirkland & Ellis LLP acted as legal counsel, the private equity firm said.
