Investment firm Cloud Equity Group (“CEG”) is a first mover and industry leader within the low to mid-market, tech-enabled, business service sector. The firm specializes in the acquisition of companies with $5MM EBITDA and under. Ignored by institutional investors due primarily to individual investment size, CEG targets a virtually untapped market segment.
Based in New York City, Cloud Equity Group currently invests a combination of debt and equity from its fifth investment fund on behalf of institutional, family office, and high net-worth individual clients. Cloud Equity Group has completed over 100 transactions to date, tasking a controlling ownership position in small and medium-sized businesses.
Cloud Equity Group’s core investment strategy is to discover undervalued businesses, address operational inefficiencies, and add value through a hands-on approach. The firm focuses primarily on cloud hosting, digital marketing, and managed service providers that have reached a plateau in their growth trajectory and require capital infusion to achieve the next level.
The Cloud Equity Group team leverages a depth of industry knowledge, operational expertise, and the talent to seamlessly integrate with existing management teams. The firm’s ability to commit permanent capital and board-level leadership to its portfolio companies has allowed countless small and medium-sized businesses to scale. Cloud Equity Group has the capacity to guide and position companies for greater success.
Since the start of the COVID pandemic, many capital markets have dried up, and investment firms have stopped deploying capital. Numerous industries have been hard hit, creating enormous market uncertainty. Businesses have been forced to transact with customers remotely in light of health concerns and restrictions on gathering in public. This trend has promoted a growth spike across the online business service sector. Cloud Equity Group recognizes the tremendous upside potential of increased demand for online and IT services and has continued to invest through the pandemic.
According to Sean Frank, Managing Partner at Cloud Equity Group, “COVID has really created a tremendous opportunity for us on two fronts. First, we can help create a liquidity solution for small business owners who are looking for capital during these difficult and uncertain times. Second, it has resulted in a significant increase in demand for cloud-based and remote IT services that I believe will continue well into the future.”
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Cloud Equity Group was founded in 2013 by online services industry titan Sean Frank. The firm’s core investment strategy leverages Sean’s deep expertise as a former operator with a tremendous amount of M&A already under his belt. Sean is a serial entrepreneur who founded his first company, a white glove service hosting provider, at age 12. Through his teenage years, Sean built and scaled several businesses within the online sector, gaining deep insight into the space in the process. Sean is a highly regarded industry expert whose public speaking engagements include industry conferences and institutions, such as Harvard University and the University of Chicago.
Learn More About Cloud Equity Group
Cloud Equity Group is actively seeking to invest in and assist the growth of businesses with strong fundamentals. The firm offers a unique blend of operations and transaction teams to help support existing management teams. For more information, prospective business owners are encouraged to contact Cloud Equity Group.
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