Arcspring

Building Digital Businesses in the Services Economy

We are a next-generation private equity firm that combines capital and digital transformation expertise to unlock exponential growth.

Our Manifesto

At a fundamental level, we believe every company in every sector of the economy will ultimately become a technology company. While Arcspring is a technology-focused private equity firm built by technology operators -

We do not invest in software companies.
We invest in companies that should be software companies.

Our investment thesis is to invest in traditional businesses and transform them into digital businesses. Our focus for this thesis is the lower mid-market Business Services Economy — a $1T+ market — because it will undergo fundamental shifts driven by digital technology this decade.

AI will replace labor intensive business models in knowledge work. Digital platforms that connect two sides of a market will cause the displacement of traditional intermediaries. Technology will reconfigure service value chains and the cost structures that underpin the delivery of those service offerings. Digital will redefine the vectors of competition and create new moats and market takers.

Services will turn into Software

This represents a unique opportunity for those that know how to build digital businesses. The Arcspring team has been executing on this thesis for more than 25 years as software executives. Now we are doing this as investors

Digital Transformation catalyzed with Capital

We partner with founders, owners, and management teams to drive these digital transformations through our proprietary playbooks called Springboard, and support the implementation of them through our in-house Arcspring Consulting Group. We combine these technology transformations, expertise, and playbooks with a high-caliber team of investment professionals with experience in the lower middle market business services sector.

We are bringing Next to Now

Investment

We love to partner with founders, owners, and management teams that aspire to build leading digital businesses in their industries.

Focus

Arcspring invests in lower middle market Business Services companies, both white-collar knowledge workers — such as legal services, marketing services, staffing services, and consulting services – and blue-collar skilled laborers – such as logistics services, maintenance services, inspection services, and industrial services.

Criteria

  • Profitable with between $3-30M in EBITDA
  • Operates in a large and growing market with favorable macro tailwinds
  • Service offerings are essential, differentiated, with compelling value propositions
  • Loyal, stable customer base with low customer concentration
  • Predictable cash flow with low capital intensity
  • Strong management team to drive transformation
  • Fragmented landscape to support M&A
  • Multiple opportunities for Digital Transformation

Type

Arcspring provides capital for management buyouts for companies with an enterprise value of $250M and down.

Our Team

Arcspring is made up of operating executives, complemented with proven investment professionals, with a proven track-record of acquiring and building profitable high-growth companies. Collectively, the Arcspring team has successfully completed over 60 acquisitions and exits. Arcspring’s two founders spent 25 years in the technology industry as entrepreneurs and executives — starting, transforming, and growing multiple companies, both organically and inorganically, and creating billions of dollars of enterprise value.