Beech Tree Private Equity has added a fourth IT solutions provider to its investment portfolio – acquiring a stake in cloud and IT managed services provider Arc Systems.
The duo claim the investment will give Essex-based Arc extra firepower to “scale up rapidly”, particularly around the Microsoft stack.
Beech Tree invests between £10m and £35m into “high-growth” UK-based businesses in the technology, financial services and tech-enabled services sectors.
It already counted Google partner Ancoris, Microsoft partner Transparity and cyber-security specialist Performanta among its investments, making it one of the biggest private equity investors in the channel alongside the likes of LDC and August Equity.
“Beech Tree’s experience in the sector makes them the perfect partner to support us in achieving our growth aims,” James Clayden, Arc Systems
Beech Tree exited MSP BCN in January 2022 having helped quadruple its revenues to £40m, and counts UC provider Wavenet among its other past investments.
Founded by James Clayden in 1992, Arc Systems is headquartered in Basildon, Essex, and primarily operates in and around London and the South-East. It offers a range of services including IT support, public and private cloud solutions, security and back-up to UK SME and mid-market corporates. According to its most recent annual accounts, it has 57 employees.
Clayden said that Beech Tree’s “experience in the sector and track record of successful investments makes them the perfect partner to support us in achieving our growth aims”.
Adam Rudd, Partner of Beech Tree, added: “We are excited to be partnering with Arc and investing further into a sector that we know well.”