Pamlico Capital Announces Investment in 10th Magnitude
Funding Supports Continued Growth of One of the Top Microsoft Azure Services Firms
Pamlico Capital (“Pamlico”) announced today that they have made a significant growth equity investment in 10th Magnitude, a leading Microsoft Azure services firm. The investment will support the firm’s strategic and geographic expansion initiatives as well as provide resources for potential acquisitions to expand 10th Magnitude’s breadth and service offerings. Specific terms of the transaction were not disclosed.
“The vast Microsoft Azure market opportunity continues to grow exponentially,” said Alex Brown, 10th Magnitude’s founder and CEO. “This investment will enable us to scale to meet increasing demand for transformational cloud-based solutions, and will allow us to quickly expand our capabilities to address rapidly emerging client needs in areas like managed cloud services. Our clients continue to ask more of us as we support their cloud transformation, and this investment will help us deliver more for them.”
10th Magnitude’s current management team will maintain significant ownership of the company and continue to manage the firm with support from Pamlico to build on the success they have driven since founding 10th Magnitude in 2010. Over the past six years, 10th Magnitude has delivered hundreds of Azure consulting engagements for clients in the U.S. and around the world. The firm is a Microsoft Gold Cloud Partner and a member of the Azure Partner Advisory Council, and has achieved the elite status of a Microsoft National Solution Provider.
“Our National Solution Provider team recognized the potential for an Azure-focused system integrator and added 10th Magnitude in 2014,” said Stephen Boyle, vice president of U.S. Partner Strategy and Programs at Microsoft. “10th Magnitude has continued to lead the Microsoft channel with tremendous year-over-year growth by driving transformation with our joint customers and engaging proactively with our field teams. This next phase in 10th Magnitude’s evolution further validates their model and the significant opportunity for all partners in the Microsoft Cloud.”
With geographic presence in Chicago, Dallas, St. Louis, Columbus, Ohio and the New York Metro area, 10th Magnitude has grown from a small Chicago-based development team to a national consulting firm serving a global client base. The company recently earned position 1,343 on the 2016 Inc. 5000 list of the fastest-growing private companies in the U.S., reflecting a 287 percent three-year growth rate.
“Thanks to its visionary management team, dedicated focus on Microsoft Azure and the unmatched technical capabilities of the staff, 10th Magnitude is a unique platform and is well positioned to continue its rapid growth delivering transformational cloud services for its clients,” said Scott Stevens, partner at Pamlico Capital. “We’re excited to partner with Alex Brown and the 10th Magnitude team to help them build upon the success they’ve achieved as a market leader.”
Pamlico Capital is a private equity firm founded in 1988 that invests in growing middle market companies in North America. Pamlico Capital seeks control-oriented growth equity investments of up to $200 million alongside founders and proven leaders in its target industries: communications, healthcare, services and software. The firm, based in Charlotte, NC, has assets under management of almost $3.5 billion. For additional information, please visit www.pamlicocapital.com.