New private equity fund, Kingland Capital, has made its first investment into Dynamic Networks to support its organic and acquisitive expansion.
Founded by experienced mid-market investor Paul Landsman in 2023, Kingland Capital invests up to £20m in fast-growing businesses and has supported a management buyout at the Leeds-based company.
The deal aims to create one of the fastest growing SME-focused cloud managed service providers in the UK.
Eddie Buxton, former CEO of Maintel, the AIM-listed cloud and managed service provider, will be joining as chairman.
As part of this MBO, Hay Wain Group – a private family office – have invested alongside Kingland Capital.
Dynamic Networks, founded by James Baird and Gareth Leece, delivers cloud-led managed IT support, digital transformation services, cyber security and connectivity to the SME market.
Dynamic Networks has delivered a growth rate of more than 40 per cent between 2021-2023.
Kingland Capital looks for markets that support companies that can scale, with high levels of recurring revenue, in high growth sub-sectors where there is an opportunity to grow both organically and through acquisition.
David Smith, CEO of Dynamic Networks and leading the MBO, said: “Dynamic Networks has spent the last couple of years investing in their people, systems, processes and product portfolio and this investment will allow us to support the demanding needs of SMEs.
“I’m excited that this investment will underpin our plans to continue to grow both organically and through acquisition.”
Paul Landsman, founder of Kingland Capital, said: “We are thrilled to be backing Dave and his management team, together with Eddie in one of the best quality cloud managed services businesses in the UK we have seen.
“We look forward to helping Dave and the team develop the business organically and through complementary acquisitions over the next few years. We at Kingland, couldn’t be prouder to have Dynamic Networks as our first investment.”
The advisers to the deal were: Browne Jacobsen (Sandra Wong, Rob Northall); Bexley Beaumont (Maurice Dwyer); Grant Thornton UK (Usman Malik); Crowe UK (Alex Conway); Danescor (John Snead).