Channel-centric private equity deals just keep on coming.

On Tuesday, ScalePad said it has taken a “significant” investment from Integrity Growth Partners. ScalePad provides asset management life cycle software across hardware, software and warranty services for MSPs. (ScalePad used to go by Warranty Master.) The funding, the Vancouver-based company said, marks the first outside money it has raised since it started six years ago.

ScalePad will use the infusion to spur growth in key business areas, the company said.

ScalePad’s Dan Wensley

“The investment made by IGP into ScalePad will be put directly toward three specific pillars: people, product and partners,” CEO Dan Wensley told Channel Futures. “Specifically, we will be expanding our team of ‘Rocketeers’ in all departments, with a particular focus on development and partner education departments.”

Partners’ Impact

The partner aspect is vital to understand. MSPs will reap the benefits of the Integrity Growth Partners funding. After all, ScalePad says it sees MSPs as core to managing technological adoption and maintenance worldwide.

“We secured this investment to help us accelerate the delivery of more value in our platform, expand our ability to share and educate the industry, and expand services for our partners,” Wensley said.

Chris Day, co-founder of ScalePad, agreed.

ScalePad will use the infusion to spur growth “in key business areas,” the company said.

ScalePad’s Chris Day

“We believe that IGP’s investment and knowledge will help us continue to execute on our vision to bring the ScalePad platform to more partners worldwide while continuing to build out and innovate on our product suite,” said Chris Day, co-founder of ScalePad. “Our innovative technology and deep domain experience allow us to deliver tremendous advantages for our partners. We are thrilled to be working alongside the team at IGP and look forward to accelerating our growth and rising the tide in the MSP software space.”

ScalePad to Remain Independent

Integrity Growth Partners will not assume any control over ScalePad’s operations or direction. ScalePad will remain independent and led by its founders.

That was intentional, said Dan Wensley, ScalePad CEO.

“In choosing a partner, it was imperative for us to find one who brings meaningful strategic insight to the table while also enabling ScalePad to continue to run and grow independently,” he said.

Doyl Burkett, founder and managing partner of Integrity Growth Partners, called the ScalePad “amazing.”

Integrity Growth Partners’ Doyl Burkett

“Founders and management teams who are experts in their space and have identified opportunities to better improve processes in their own industry bring to market a unique perspective that directly benefits their customers,” Burkett said. “The ScalePad team truly understands the pain points of today’s MSPs, and we see tremendous opportunity with this team as they continue to execute on their impressive vision.”

Private Equity Deals Rebounding After Slower 2020

Integrity Growth Partners targets high-growth software and technology companies. Algo and MBS Highway comprise the two other holdings in its portfolio.

ScalePad says more than 8,5000 MSPs in 76 countries, including 60% of the MSP 501, use its products.

ScalePad’s announcement with Integrity Growth Partners comes on the heels of private funding landed by LightSpin and AttackIQ. The former secured $16 million; the latter got $44 million.

All this activity bodes well for tech’s indirect channel. Indeed, about a year after the pandemic “nearly brought PE fundraising to a halt,” PitchBook noted earlier this month, “it appears to have almost recovered entirely.”

By June, private equity firms had struck 13 deals in the United States alone, surpassing 2020’s total of 11, PitchBook said. Each of those arrangements amounted to $5 billion or more, analysts said.