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Dynamo Software, a cloud software provider for the alternative investment management sector, announced it will receive a strategic growth investment from Blackstone Growth. BXG is a leading global investment business across alternative asset classes such as private equity. The new funds will ensure Dynamo continues to serve fund managers, deal teams, asset managers, and other alternative investment stakeholders. Dynamo’s valuation is now estimated at $900 million.
The second-largest deal for a Bulgarian software company
Dynamo’s story began under a different name. Called Netage at the time, the company was set up in 1998 by Bulgarian Dilyan Pavlov with the objective of designing websites. Netage was ahead of its time for the local market. Therefore, Dilyan partnered with Krasen Draganov, his fellow colleague from the American University, and rethought the company as a software platform for managing investment processes. The headquarters was located in Watertown, Boston, while the main developers remained in Sofia, Bulgaria, with Pavlov.
Fast forwarding to 2017, private equity fund Francisco Partners acquired a majority stake in the company, becoming a capital partner on the company’s growth trajectory. At the time, this was the second-largest sale of a Bulgaria software enterprise, estimated at $70 million by Capital. They will also reinvest in the company on the occasion of the new financing.
Today, Dynamo Software is an end-to-end cloud platform for customer relationship management, deal management, portfolio monitoring, and investor reporting, among others. It serves 1000+clients around the world, including private equity and venture capital funds, hedge funds, real estate investment firms, endowments, pensions, and foundations.
Riding the tailwinds of alternative investment
Investors Vincent Letteri and Jonathan Murphy from Blackstone said they recognized the growth opportunity for Dynamo, in the context of a growing alternative investment market. Moreover, Dynamo Software is already trusted by some of the largest managers and asset allocators in the industry.
The partnership will serve the company in accelerating product development, extending and enhancing the offering across asset classes, as well as expanding the customer base.
“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,” said Hank Boughner, Dynamo CEO, in the press release.
The company further aims to use this opportunity to learn from Blackstone’s experience with alternative investments and capabilities required at each level to further develop the product roadmap, they told Capital.