Bridge Growth Partners stands out in the competitive landscape of private equity through its distinctive, concentrated investment strategy. Founded in 2013 and based in New York, this firm operates with an “outlier model,” choosing to cultivate a small portfolio of enterprise technology companies. This deliberate focus allows Bridge Growth Partners to apply deep operational expertise to each investment, nurturing growth and driving significant value. With only five acquisitions to date and one successful exit remaining, their approach emphasizes quality and targeted growth over quantity and diversification.
“We like to keep it pretty focused so that we can apply the energy and the quality of our talent on those companies,” explained co-founder, CEO, and CIO Alok Singh in a Mergermarket interview. This statement encapsulates the firm’s core philosophy: a commitment to intensive, hands-on partnership to propel portfolio companies to strategic relevance and market leadership.
The Artisan Approach to Private Equity
Alok Singh aptly describes Bridge Growth Partners as a business of “artisans,” contrasting their model with firms that prioritize a large, diversified portfolio to mitigate risk and expand assets under management (AUM). This artisan approach signifies a dedication to meticulous craftsmanship in private equity, focusing on in-depth operational improvements and strategic enhancements within a select group of companies. This philosophy underscores a fundamental difference in approach – prioritizing deep engagement and impactful growth over broad market coverage.
This concentrated strategy is underpinned by a robust and proven track record in the technology sector. Singh himself brings extensive experience from New Mountain Capital, where he served as a Managing Director from 2002 to 2013. Complementing his expertise is co-founder and Chairman Joe Tucci, a figure of immense stature in the tech industry. Tucci previously served as Chairman and CEO of data storage giant EMC Corp until its landmark sale to Dell in 2016 for USD 67 billion. His leadership extends to chairmanships at VMWare and Wang Labs, bringing a wealth of industry insight and operational acumen to Bridge Growth Partners.
Strategic Investments in Enterprise Technology
Bridge Growth Partners targets growth-oriented investments within established middle-market companies, with a clear objective to transform them into strategically vital assets. Their investment thesis is centered on “enterprise plays,” generally focusing on companies that offer essential technology solutions for businesses. This targeted approach allows them to leverage their expertise and network to create substantial value.
To date, Bridge Growth Partners has deployed nearly USD 1 billion, including co-investor capital, across its first two funds, demonstrating significant investment capacity and investor confidence in their strategy. Their inaugural fund closed in October 2016 at USD 410 million, serving as the foundation for their first five platform acquisitions.
The firm’s second fund, filed in 2021 without a disclosed size, was strategically utilized as a top-up fund. Instead of venturing into new investments amidst the inflated valuations of the post-pandemic M&A boom, Bridge Growth Partners opted to reinforce its stakes in three existing portfolio companies. This prudent decision reflects their commitment to value investing and deep understanding of their portfolio businesses.
“You have a choice: you can buy a new asset and potentially overpay for it and take on all the risks of a new asset, or you can put more money into your existing companies, which you know really well,” Singh elaborated. This strategic allocation of capital underscores their focus on maximizing returns through informed, in-depth engagement with their current portfolio.
Co-investment plays a crucial role in Bridge Growth Partners’ financial strategy, offering enhanced flexibility in dynamic markets. According to Singh, “In today’s market, co-investors offer funds substantial additional flexibility, so if they need additional capital all they need to do is talk to their investors and they will likely be able to get that additional capital in the form of a co-investment.” This collaborative approach expands their financial capabilities and strengthens investor relationships.
Navigating a Favorable Market for Acquisitions
Alok Singh identifies the current environment for acquiring application software and infrastructure technology businesses as exceptionally favorable, marking it as the best he has observed in many years. This optimistic outlook is largely attributed to the correction in valuations following the peak of the M&A market. This buyer’s market presents a significant opportunity for Bridge Growth Partners to potentially expand its portfolio beyond its initial five companies.
“We’re not encumbered by legacy portfolios where we have any issues or anything like that, and we have the right kind of resource set in terms of the talent around the table to be able to pursue those opportunities,” Singh stated, highlighting the firm’s agility and readiness to capitalize on current market conditions.
Bridge Growth Partners is strategically focusing on sectors with high growth potential, including data analytics, business intelligence tools tailored for CFOs, specialized software for the insurance and government sectors, and supply chain logistics solutions. Education is also a core area of expertise and focus for the firm, leveraging their “deep level of expertise in that vertical,” as Singh noted.
In infrastructure, their interest lies in middleware and potentially software-enabled services. However, they are approaching the latter with caution, carefully assessing the transformative impact of Artificial Intelligence on service-based businesses.
While Bridge Growth Partners has engaged in larger transactions, their typical investment ranges from USD 100 million to USD 200 million in equity. They prioritize a lower-leverage approach, preferring to be “over-equitized rather than over-leveraged.” Singh expressed a conservative view on leverage, stating, “There are plenty of people who think that six- or seven-times leverage is fine; I personally don’t.”
The firm typically seeks majority ownership, often exceeding 80% equity, although this is not always a prerequisite. Their investment in government services firm Salient CRGT, successfully exited in 2021, exemplified a significant minority stake of approximately 50%.
Hands-On Operational Expertise: The Bridge Growth Partners Advantage
The cornerstone of Bridge Growth Partners’ model is the deep integration of extensive industry experience into their portfolio companies. The leadership team, including Singh and Tucci, boasts a wealth of experience as both investors and operators, providing a unique blend of financial and operational perspectives.
Executive Partner Don Callahan, former CAO and Global Head of Operations and Technology at Citigroup, and Executive Partner Steve Mills, previously EVP in charge of Software and Systems at IBM, are among the key figures contributing to this operational strength. Mills effectively managed a USD 20 billion business at IBM, bringing invaluable large-scale operational expertise.
“Our advisors work with us on the diligence of these companies and then if we decide to make the investment, they actually end up on the boards of the companies,” Singh explained. This direct involvement ensures that their expertise is not just advisory but actively implemented within portfolio companies.
These experts often take on pivotal roles, such as chairing technology or strategy committees, driving strategic direction and operational improvements. Their approach to enhancing each business begins with ensuring the right leadership and talent are in place. This is frequently followed by strategic M&A to broaden capabilities and leveraging their extensive network with large enterprises to bolster portfolio companies’ sales efforts. “A big part of what we do is about go-to-market,” Singh emphasized, highlighting their focus on driving revenue growth.
Case Study: The Transformation of Syniti
A prime example of Bridge Growth Partners’ operational approach is their acquisition and transformation of Syniti (formerly BackOffice Associates) in August 2017. Syniti, a global vendor of enterprise data management software and services, underwent a significant strategic shift under Bridge Growth Partners’ guidance.
Bridge Growth Partners spearheaded Syniti’s transition from a perpetual license software model to a cloud-based business, aligning it with modern market demands. This transformation included a comprehensive rebranding in 2019 and the installation of a new management team, notably appointing former Accenture CEO Bill Green as Chairman of the Board. Joe Tucci also joined the board, and Steve Mills became chair of the technology committee, further embedding Bridge Growth Partners’ expertise within Syniti’s operations.
Leveraging Syniti’s existing presence within the SAP ecosystem, Bridge Growth Partners facilitated deeper product partnerships with SAP and cultivated new alliances with industry leaders like Deloitte, IBM, Accenture, and Capgemini. Syniti plays a crucial role in assisting major clients like Merck and Johnson & Johnson in migrating from legacy SAP technology to the latest ERP platforms, often complex, multi-year projects, as Singh detailed.
Through strategic add-on acquisitions and focused growth initiatives, Syniti expanded its headcount from approximately 800 to over 1,200 employees while successfully transitioning to a SaaS model.
Strategic Exits and Future Outlook
The successful transformation of portfolio companies under Bridge Growth Partners’ guidance has resulted in attractive acquisition opportunities. In August, Capgemini announced a definitive agreement to acquire Syniti, recognizing its strategic value and market position. “It was Capgemini who approached us and said ‘we want to buy this company,’ a few months ago, and now we’re in the final stages of that,” Singh revealed, noting that Capgemini intends to retain the existing management team. Bridge Growth Partners held approximately 80% of Syniti following additional investments from its second fund.
Previous successful exits include the sale of Accedian to Cisco in June 2023 and the sale of Finalsite to Veritas Capital in December 2021. Salient CRGT was acquired by GovernmentCIO in July 2021. Solace Corp, the remaining portfolio company, is currently on a strong growth trajectory, poised for a future exit.
Bridge Growth Partners prefers traditional exit strategies and is unlikely to consider continuation funds, reflecting their commitment to a defined investment lifecycle. “Our view is that what we do should be done, end-to-end, effectively between four to six or seven years,” Singh concluded. This disciplined approach and focused execution underscore Bridge Growth Partners’ position as a strategic and effective player in the enterprise technology private equity space.
