Ffl Partners, a renowned private equity firm specializing in growth investments within tech-enabled business services and healthcare, has announced a strategic growth investment in Abacus Group. Abacus Group stands as a premier IT Managed Services Provider (MSP) catering specifically to the financial services sector, including hedge funds, private equity, venture capital firms, and family offices. The terms of this private transaction remain undisclosed.
Established in 2008, Abacus Group has distinguished itself by delivering comprehensive IT management solutions tailored for the unique demands of the financial industry. Their award-winning Abacus Cloud platform provides investment managers with a streamlined, as-a-service technology model. This innovative platform allows for on-demand scalability, ensuring clients can readily meet evolving IT, cybersecurity, and compliance mandates. With its roots in San Francisco and headquarters in New York City, Abacus boasts a workforce of over 250 professionals, serving more than 650 clients. They maintain robust on-site support teams in every major financial hub across the U.S. and the U.K., ensuring responsive and expert service delivery.
Jonathon Bunt, Director at FFL Partners, highlighted the strategic rationale behind the investment, stating, “In our extensive evaluation of over 25 MSPs in the past three years, Abacus emerged as the clear frontrunner. This distinction is attributed to the exceptional strength of its management team, its cutting-edge cloud platform, and a service methodology meticulously crafted for financial services firms where compliance and cybersecurity are non-negotiable.” Bunt further emphasized FFL’s enthusiasm for collaborating with Abacus Founder and CEO Chris Grandi and his leadership team. The partnership aims to fuel further investment in client support and strategic expansion into new client segments, both organically and through carefully selected acquisitions, leveraging the expertise of ffl partners in scaling businesses.
Chris Grandi, CEO of Abacus Group, also expressed confidence in the partnership: “FFL Partners demonstrates a profound understanding of our business and the markets we serve. Their strong track record of partnering with founder-led companies like Abacus to facilitate scalable growth makes them an ideal ally. I am certain that the collective resources, business insight, and drive that the ffl partners team brings will be invaluable for Abacus as we embark on our next phase of expansion.”
Market analysis indicates a substantial total addressable market for financial services IT MSPs, estimated to exceed $4 billion, with projected growth rates of up to 15% through 2025. This robust growth is underpinned by several key trends within the financial sector. The escalating importance of cybersecurity, the ongoing migration to cloud-based infrastructure, the increasing demand for sophisticated data analytics, and the persistent challenges in attracting and retaining in-house IT talent are all converging to amplify the critical role of world-class MSPs like Abacus.
Cas Schneller, Managing Partner at FFL Partners, elaborated on this market dynamic: “The intensifying focus on cybersecurity protocols, the inevitable transition to cloud environments, the imperative for enhanced data analytics capabilities, and the continuous difficulty in securing and retaining skilled IT professionals collectively underscore the increasing necessity for a premier MSP such as Abacus.” Schneller further noted the particular relevance of Abacus’ specialized expertise within highly regulated industries like financial services. The deep industry knowledge that Abacus brings to the table is expected to be a key driver in the company’s continued expansion across its core client base, encompassing private equity, venture capital, family offices, and wealth management firms, with the backing of ffl partners.
The investment in Abacus Group marks FFL Partners’ third venture within the IT services sector, following successful investments in ALKU and Optomi Professional Services. Furthermore, Abacus complements FFL’s established expertise in partnering with leading companies that serve the alternative investment community, a commitment that began with their 2018 investment in Accordion Partners. This strategic investment underscores ffl partners‘ dedication to fostering growth and innovation within key sectors.
Guggenheim Securities, LLC and Lazard acted as sell-side advisors to Abacus and Westview Capital Partners. Kirkland & Ellis LLP provided legal counsel to FFL Partners, while Latham & Watkins LLP and Lowenstein Sandler LLP served as legal counsel to Abacus and Westview on the transaction.
About FFL Partners
FFL Partners, based in San Francisco, is a leading middle-market private equity firm with a history of investing in high-quality companies since 1997. The firm adopts a hyperspecialized, thematic investment strategy, concentrating on specific areas within Healthcare and Tech-Enabled Services. FFL utilizes its proprietary SEED process to identify and engage with exceptional management teams, employing a high-engagement approach to accelerate growth within its portfolio businesses. FFL currently manages over $5 billion in cumulative capital commitments. For more information, please visit www.fflpartners.com.
About Abacus Group
Abacus Group is a leading provider of hosted IT solutions and services, focusing on delivering enterprise-grade technology platforms specifically designed for the alternative investment industry. Their award-winning Abacus Cloud platform offers investment managers a comprehensive as-a-service model to address all technology needs, providing scalable solutions for cybersecurity, storage, and compliance requirements. Abacus Group has offices located in major financial centers including New York, NY; San Francisco, CA; Boston, MA; Dallas, TX; Greenwich, CT; Los Angeles, CA; Charlotte, NC; Miami, FL; and London, England. Additional details can be found at www.abacusgroupllc.com.
