MSPWorld Inspire 2024 in Las Vegas if you want to dive deeper into this (and other) topic of PE influence on managed services.

The Managed Service Provider (MSP) industry has seen significant changes since 2010, marked by a trend towards Private Equity (PE) expansion, growth, and consolidation. This movement has brought about a critical examination of value creation versus value extraction within the sector. Value creation in this context refers to the process of enhancing a company’s value by offering superior products, services, or experiences that customers appreciate. On the other hand, value extraction often involves maximizing profit without necessarily contributing new value to the market or stakeholders.

The MSP landscape has also witnessed the emergence of challengers to value extraction vendors. These challengers advocate for practices that prioritize long-term value creation over short-term financial gains. As MSPs become more discerning, they are increasingly supporting vendors that align with their values and business goals, often making choices that reflect their commitment to sustainable and equitable growth.

Private Equity’s impact on MSPs has been multifaceted. PE firms have been instrumental in driving consolidation in the industry, creating large MSP platforms through acquisitions. While some of these PE-backed platforms have had a positive influence by providing resources for innovation and expansion, others have drawn criticism for prioritizing financial outcomes over the needs of the MSP community and their clients.

As the MSP industry continues to evolve, the debate between value creation and value extraction remains central. MSPs are actively participating in shaping the future of the industry by making informed decisions that reflect their preferences and values, which often includes a shift away from vendors and practices associated with value extraction. The influence of Private Equity is undeniable, and its role in the industry’s future will likely continue to be a topic of discussion and analysis.

Tags : managed services,private equity,value creation,value extraction

Sorry, the comment form is closed at this time.

YouTube Logo | MSPAlliance

Subscribe to MSPAlliance on YouTube!

Explore a world of valuable content, including full-length podcast episodes and clips, thought-provoking special interviews, immersive events, enriching webinars, live streams, and more.

Join our community on YouTube, subscribe to our channel, and elevate your MSP journey!

Mobile and Laptop device image of YouTube MSPAlliance Channel | MSPAlliance

Have questions?

We're here to help! Fill out the form below and we will get back to you as soon as possible.

First Name *
Last Name: *
Contact Email: *
*Required Fields
Note: It is our responsibility to protect your privacy and we guarantee that your data will be completely confidential.





Contact us


510 Meadowmont Village Cir, #289 | Chapel Hill, NC 27517

MSP News

Sign up for MSP News, the weekly newsletter bringing you news and analysis from the managed services industry.