Francisco Partners to remain substantial shareholder through fund reinvestment
Francisco Partners portfolio company Dynamo Software Announces Strategic Growth Investment from Blackstone Growth
New York – Dynamo Software, a premier provider of comprehensive cloud software for the alternative investment management industry, today announced its entry into a definitive agreement providing for a strategic growth investment from funds managed by Blackstone Growth (BXG). Existing investor Francisco Partners will also reinvest in the company, which has grown rapidly the last four years.
The investment will help drive Dynamo’s expansion into new global markets and continued product development to best serve fund managers, deal teams, asset owners / allocators and other industry participants across the alternative investment landscape. With over 1,000 clients worldwide, Dynamo’s integrated software provides solutions for front, middle and back office challenges. The Dynamo cloud platform covers key workflow solutions around customer relationship management (CRM), deal management, portfolio monitoring, investor reporting and accounting and provides value to General Partners (GPs) and Limited Partners (LPs) alike, including private equity and venture capital funds, hedge funds, real estate investment firms, endowments, pensions, and foundations, among others.
Hank Boughner, Dynamo CEO, said: “This investment from Blackstone – the largest alternative asset manager in the world – validates Dynamo’s position as a leading provider of cloud software to the alternatives sector. We believe with this partnership we can accelerate our product roadmap and further extend and enhance Dynamo’s leading offering across incremental asset classes and significantly expand our customer base.”
Vincent Letteri and Jonathan Murphy at Blackstone, said: “As the largest participant in the alternatives industry, we see the significant tailwinds behind the sector, which we believe will continue to increase the size and complexity of the individual firms and drive the continued formation of new investment funds. This creates a tremendous growth opportunity for Dynamo, whose products are already trusted by many of the largest managers and allocators in the industry.”
“It has been both gratifying and exciting to be a part of Dynamo’s tremendous growth the last four years,” commented Peter Christodoulo, Partner at Francisco Partners. “Dynamo has now built the most comprehensive cloud platform in the alternatives industry and we are proud to continue our partnership with CEO Hank Boughner and Founder & CPO Krassen Draganov as the company continues its growth story.”
The transaction is expected to be completed in Q4 subject to customary closing conditions and regulatory approvals. Financial terms are not being disclosed.
Raymond James & Associates, Inc. served as exclusive financial advisor and Kirkland & Ellis LLP served as legal counsel to Dynamo Software and Francisco Partners; and Bank of America served as exclusive financial advisor and Weil Gotshal & Manges LLP served as legal counsel to Blackstone.
About Dynamo Software
Dynamo Software has provided industry-tailored, highly-configurable investment management, reporting and data management cloud software solutions to the global alternative investment industry since 1998. Dynamo provides SaaS solutions across the private investment landscape including: private equity and venture capital funds, real estate investment firms, hedge funds, endowments, pensions, foundations, prime brokers, funds of funds, family offices, and fund administrators. The Dynamo™ platform has improved the productivity of fundraising, deal, management, research, investor servicing, portfolio management, and compliance teams worldwide. Dynamo has operations across US, UK, Continental Europe and Asia. For more information, please visit www.DynamoSoftware.com.
Blackstone is the world’s largest alternative asset manager. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our $684 billion in assets under management include investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.
About Francisco Partners
Francisco Partners is a leading global investment firm that specializes in partnering with technology and technology-enabled businesses. Since its launch over 20 years ago, Francisco Partners has invested in more than 300 technology companies, making it one of the most active and longstanding investors in the technology industry. With more than $25 billion in assets under management, the firm invests in opportunities where its deep sectoral knowledge and operational expertise can help companies realize their full potential. For more information on Francisco Partners, please visit www.franciscopartners.com.