Beech Tree Private Equity has invested in cloud and IT managed service solutions provider Arc Systems.

North West-based Beech Tree hasn’t disclosed the size of the investment but it will allow Arc to continue its growth trajectory and scale up rapidly in a highly fragmented market.

Founded by James Clayden in 1992, Arc Systems is headquartered in Basildon, Essex, and primarily operates in and around London and the South East.

The business offers a range of services including IT support, public and private cloud solutions, security and back-up to UK SME and mid-market corporates.

Beech Tree has a strong track record of successful investments in the sector including Transparity, Ancoris, and BCN, the latter of which it exited in June 2022.

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.

“The strong relationships they have with their customers is a testament to how Arc delivers fantastic outcomes and support to mission-critical solutions for their customers.

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“We are looking forward to supporting the Arc management team on an ambitious growth strategy.”

Beech Tree has offices in Manchester and Birmingham.

James Clayden, CEO and founder of Arc, said: “We are delighted to have secured this investment from Beech Tree Private Equity. We were immediately aligned with them culturally, and their experience in the sector and track record of successful investments makes them the perfect partner to support us in achieving our growth plans.

“We have experienced strong growth in the last few years and this investment will allow us to better support our customers, partners and people as we grow with them.”

The investment will enable Arc to expand its capabilities, most notably across the Microsoft Stack, with a special emphasis on its people and technical excellence, and strengthen its position as a leading provider of cloud and IT managed service solutions in the UK.

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The global IT managed services market continues to grow, with the UK market still the largest in Europe, underpinned by growth in SME and mid-market businesses who are attracted to the benefits of cloud computing and addressing an IT skills shortage, encouraging more businesses to outsource their IT requirements.