Clearwater advises secondary buyout of Microsoft partner to support ambitious growth plans

Transaction

Transparity on its investment from Bowmark Capital

Sell-side

Undisclosed

Role

Adviser to Transparity on its investment from Bowmark Capital

Sector

Tech & Tech Services

Region

We have advised Transparity, a leading Microsoft technology partner, on its investment from Bowmark Capital, the mid-market private equity firm. The transaction provides an exit for Beech Tree, which invested in the company in 2020. Our team advised the shareholders of Transparity on this transaction.

Transparity is a high-growth Microsoft services partner providing digital transformation solutions focused on cloud infrastructure, application development, cyber security, data and AI. The company has over 260 UK-based employees who together hold more than 1,000 Microsoft technical certifications. It holds all six Microsoft Solution Partner designations as well as Azure Expert MSP status.

Transparity’s solutions and services cover Data, AI, Azure, Power Platform, Dynamics, Cyber and Digital Workplace, which it provides to over 500 customers. The combination of its alignment with these high-demand technologies, its strong technical capabilities and its customer-centric approach, has enabled Transparity to deliver annual organic revenue growth of over 25%. It was also recently ranked as the 17th best technology company to work for in the UK.

Bowmark has a long track record of investing in technology services companies. Its partnership with Transparity will help the company continue its strong growth momentum through investment in data engineering and AI skills, capability expansion into emerging technologies and selective UK and European acquisitions to strengthen Transparity’s ability to deliver for its customers.

Beech Tree, being one of the leading lower mid-market investors in the sector, has worked closely with Transparity over the last three and a half years as the company has significantly developed its Microsoft capabilities, expanded its product offering, invested in its people and culture, completed key strategic bolt-on acquisitions and delivered strong organic growth.

When we first met Adam and the team at Beech Tree, there was an immediate cultural alignment and clear evidence of their sector knowledge. Together we have built a market-leading management team and a truly special business. We are now excited to be partnering with Bowmark who share the vision of our full potential and of our differentiated market position. Our plans involve the creation of over 100 new roles in the UK over the coming years, an apprentice-driven academy, AI-led IP investments and a plan to look at the broader EMEA opportunity. The future will be based on continued organic growth and a well-considered M&A strategy. Thank you to everyone who has been involved over the years - employees, customers and partners, as we always say, the best years of Transparity are ahead of us.
Paul Bolt, CEO and David Jobbins, Chairman from Transparity

We are delighted to be supporting such an impressive team who have built a genuinely differentiated, high-growth business. Transparity’s combination of technical depth, employee-centric culture and Microsoft alignment means that it is strongly positioned to deliver transformative outcomes for its customers. We look forward to helping Transparity capitalise on the significant opportunity ahead.
Bowmark Investment Director, Fiona McCormick

It has been an incredible journey working alongside the Transparity team. When we backed them in 2020, we saw the potential to build a market-leading business in the Microsoft ecosystem. I am really proud of what the team have accomplished. They have created the standout Microsoft Cloud partner in the UK, if not across Europe. Together, we have bolstered strong organic growth with strategic acquisitions, enabling us to expand our capabilities and cross-sell services to our customer base. We have truly enjoyed collaborating with the Transparity team and wish them all the best for the future. I am confident that with Bowmark's sector knowledge and support, they will continue their journey to become the #1 Microsoft Partner across Europe.

We look for genuine partnerships, in both the businesses we invest in and the advisers we work with. We value Wes, Finn and the Clearwater team for the valued counsel, deep market knowledge and passion. Their strategic counsel is exceptionally well-thought-out and tactical, both in the planning and execution phases of the transaction.
Adam Rudd, Partner, Beech Tree

From our initial meeting with Wes and the Clearwater team, it was clear they possess deep market knowledge. The entire team distinguish themselves through their personal commitment to deals: they are dedicated, transparent, and genuinely prioritise their clients' best interests. They achieved an outcome that aligned with our goals for Transparity, as well as those of our customers, partners, employees, and shareholders. Plus, working with them was enjoyable!
David Jobbins, Chairman of Transparity

We have worked with the team at Transparity twice before this transaction, assisting them in raising debt for acquisitions in 2021 and 2023. We feel privileged to have recognised what a fantastic business it is so early on. Since then, we have witnessed the addition of an exceptionally talented leadership team whose strategy has resulted in a truly unique, highly differentiated Microsoft partner. As we said at our first meeting, we can't benchmark Transparity; it is the benchmark! The team and I thoroughly enjoyed working with Beech Tree, David, Paul, Kirsty, and the entire management team. You graduate from one great partner in Beech Tree to another incredibly supportive partner in Bowmark: we wish you well as you continue to be the benchmark not only in the UK but also in Europe and beyond!
Wesley Fell-Smith, Head of Tech at Clearwater