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.
