Avant became the first technology services distributor to see its private equity investment come to fruition on Tuesday.
Court Square Capital Partners invested in the Chicago-based TSD for an undisclosed sum. The deal marks Avant’s second institutional investor, following Pamlico Capital’s 2021 investment in the company. Pamlico Capital also recently re-upped its stake in the company.
“This is the first successful recap in our space,” Avant CEO Ian Kieninger told Channel Dive.
Avant picked Court Square out of a field of about 20 suitors. Kieninger said the firm stood out due to its focus on retaining founders and its knowledge of the advisor channel.
Court Square has investments in suppliers such as Thrive and partners such as Ahead that transact in the model. The team at Court Square also are on good terms with the team at Pamlico, Kieninger said.
“This partnership brings more horsepower, appreciates the nuance of the space, but also sees a really big vision, even opening our eyes to how much bigger this could possibly be for everyone,” Kieninger said.
Avant will use its new funding to continue expanding its flagship Pathfinder platform and add headcount in sales, engineering and back office. The added partner can also help Avant open up new technology practices that require staffing and influence. Court Square was particularly interested in helping Avant expand its reach in SaaS, Kieninger said.
Kieninger said Avant’s focus on organic growth appealed to Court Square. Avant purchased only two companies with Pamlico: PlanetOne Communications in 2022 and CX Effect in 2024.
“They like the pureness of our business and its ability to scale, and that felt really good for us,” he said. “It means there they weren't going to take us in directions that were not natural motions for us.”
Avant chief strategy officer Alex Danyluk said the company intends to keep its technology advisor partners — which it calls trusted advisors — at the center of its strategy. TAs rely on TSDs for supplier contracts and supplier vetting, commission processing, training and marketing support.
“Avant stood out to us for its clarity of vision, strong leadership, and commitment to elevating the trusted advisor model,” said Matt Dennett, partner, Court Square Capital Partners. “The company has built an impressive foundation and a culture focused on continuous improvement.”
The first through the process
Pamlico’s success with Avant has cleared a path as private equity firms look to grow their footprints in the TSD and technology advisor market..
Kieninger said the deal should assuage partners that the entrance of PE wasn’t a flash in the pan.
“I think the space needed that to prove itself out. Everybody can fool someone the first time around. It's going to send a real good signal for everybody else in the space who's trying to grow and drive business,” he said.
Omdia principal analyst Devan Adams agreed.
“It’s something that the overall market could benefit from. This could continue the wave of investment,” Adams said.
Danyluk said Pamlico’s decision to stay invested is notable.
During Pamlico’s tenure as primary investor, Avant poured millions into software development for Pathfinder, which TAs use to identify and vet suppliers for deals, he said. Avant also saw double-digit growth each year with Pamlico.
“It shows the continued, expanding belief in the growth of our industry,” said Amplix CEO Dan Gill, whose company partners with Avant. “Folks that know this channel and had experience in it want to double down, and that's put more capital into growing business in our industry overall.”
Avant’s entire leadership team will remain in place.
“That's the commitment we got,” said Kieninger, who co-founded Avant with President Drew Lydecker in 2009. “We think we know what we're doing here. We're doing it really well, but things are getting bigger and they're scaling, and we want resources and we want to be able to do things no one's ever done in this space, to take it to the next level.”
