AI is advancing rapidly, but SMB adoption remains low
The capability gap between what AI can do and what most small and mid-sized businesses actually use is widening. This creates a structural opportunity for businesses positioned to bridge it.
Future State
Building an AI-Native
Services HoldCo
Acquiring and transforming essential service businesses into AI-enabled compounders
We acquire profitable, fragmented service businesses and improve them through AI-driven automation, new revenue streams, and operator-led execution.
The Opportunity
Three structural shifts are converging
This convergence creates a clear opportunity: acquire strong, profitable service businesses and improve them structurally through disciplined technology application.
Essential service industries remain fragmented and analogue
Labour-heavy, process-driven service businesses have not yet meaningfully embraced automation. They are operationally under-optimised and structurally ripe for improvement.
A generational ownership transition is accelerating deal flow
Business owners across a range of service industries are approaching retirement with limited succession options. This is expanding the pool of high-quality acquisition candidates at attractive valuations.
Core Thesis
We acquire and improve
We believe the next generation of HoldCos will not simply preserve cashflowing businesses — they will actively improve them. Our model is built on three compounding levers.
↓
Improve margins through AI-driven automation
Reduce the cost of repetitive, labour-intensive work. Automate Level 1 support, administrative workflows, and manual reporting processes to structurally improve the cost base.
↑
Expand revenue through new service offerings
Introduce higher-margin, AI-enabled services that customers already need. Transform portfolio businesses from reactive service providers into active operational partners.
⟳
Compound capital through disciplined reinvestment
Use improved cashflows to acquire additional platform businesses. Each acquisition strengthens the playbook and expands the HoldCo's compounding capacity.
Execution Progress
We are not starting from zero
We have already defined the market, developed the operator model, piloted AI tools, and built an active pipeline of opportunities. The foundation is in place.
✓
Define the Market
Identify the industry, map the competitive landscape, and validate the acquisition thesis.
✓
Develop the Operator Model
Define the HoldCo / PortCo structure, CEO accountability framework, and capital allocation approach.
✓
Pilot AI Tools
Test and validate specific AI and automation tools that drive cost reduction and revenue expansion.
4
Build Pipeline
Develop and qualify an active pipeline of acquisition opportunities through proprietary deal access.
5
Execute Roll-up
Complete initial acquisitions, deploy the AI playbook, and begin compounding operational improvements.
Industry Focus
MSP-first. HoldCo ambition over time.
We are initially focused on MSPs while evaluating adjacent verticals. Once the playbook is proven, we will expand into structurally similar service industries.
Managed Service Providers
Primary FocusHighly fragmented, recurring revenue, labour-intensive, and trusted technology partners to SMBs. MSPs are the ideal starting point for our AI-enabled operational playbook.
Accounting
EvaluatingFragmented ownership, recurring client relationships, and significant process automation potential. Adjacent to our core competencies.
Strata & Property Management
EvaluatingLabour-heavy, geographically fragmented, and driven by recurring service agreements. Strong structural parallels with MSPs.
Other Service Verticals
FutureAdditional essential service industries with recurring revenue, fragmented markets, and meaningful AI automation opportunities will be evaluated over time.
Sequencing matters. We will build the MSP playbook to a high standard before expanding into adjacent verticals. Near-term focus remains clear. Read our thesis on MSPs →
Why MSPs First
The ideal starting point
MSPs combine all the structural characteristics we look for: fragmented ownership, recurring revenue, meaningful automation potential, and an unrivalled position as the trusted technology partner to SMBs.
Highly fragmented market
Thousands of independent MSPs operating below institutional radar. No dominant acquirer. Rich pipeline of quality businesses at attractive valuations.
Recurring, predictable revenue
Managed service contracts generate monthly recurring revenue under long-term agreements. Revenue visibility and customer retention are structurally strong.
Labour-heavy and under-optimised
A significant portion of MSP costs sit in repetitive, manual work — particularly Level 1 support. This is precisely where AI delivers measurable, immediate impact.
Deep customer integration
MSPs manage the technology environments of their clients. They control the software stack, own the infrastructure relationship, and are responsible for day-to-day operations.
Trusted advisor status
This trust has been earned over years of consistent delivery. It gives MSPs the right to act — and to introduce new capabilities — in a way that new market entrants cannot replicate.
Natural AI distribution layer
MSPs are the most efficient delivery channel for AI into the SMB economy. They already have the access, the relationships, and the operational infrastructure to deploy at scale.
Value Creation Model
A repeatable playbook
Our value creation model is concrete, disciplined, and designed to compound. The same approach applies across every portfolio business.
01
Acquire high-quality businesses at attractive multiples
Target profitable, well-run MSPs with strong customer retention and recurring revenue. Prioritise businesses where operational improvements will drive measurable EBITDA uplift.
02
Reduce costs through AI and workflow automation
Deploy proven AI tools to automate Level 1 support, administrative workflows, and repetitive manual processes. Shift team capacity toward higher-value activities.
03
Introduce higher-margin AI-enabled services
Expand the revenue mix toward AI implementation, workflow automation, and managed AI services. These offerings command higher margins and deepen customer dependency.
04
Improve operational efficiency and utilisation
Drive improvements in team utilisation, service delivery consistency, and customer satisfaction. Build the operational foundation for sustainable, compounding performance.
05
Reinvest cashflows into future acquisitions
Use improved, growing cashflows to fund the next acquisition. Each new business strengthens the playbook and accelerates the compounding engine.
EBITDA Transformation
The before and after
AI drives both cost reduction and revenue expansion simultaneously. The following example illustrates the structural transformation potential of a typical MSP platform acquisition.
Traditional MSP
AI-Enabled MSP
Revenue
$5.0m
$6.5m
+30%
Support & Engineering
(50%) $2.50m
(36%) $2.34m
↓14pts
SG&A
(23%) $1.15m
(18%) $1.17m
↓5pts
Tools & Software
(15%) $0.75m
(12%) $0.78m
↓3pts
Total Costs
(88%) $4.40m
(66%) $4.29m
↓22pts
EBITDA
12% = $0.60m
34% = $2.21m
+3.7×
+30%Revenue
+3.7×EBITDA
12% → 34%Margin
Illustrative example. Actual outcomes will vary based on the specific business and implementation approach.
Operating Model
Lean HoldCo. Decentralised execution.
We maintain a lean central team focused on capital allocation, AI tooling, and operator support. Portfolio businesses retain full operational autonomy and accountability.
HoldCo
Central team responsibilities
Strategy, capital, and the tools that make the whole portfolio stronger.
- Capital allocation and M&A execution
- AI playbook development and tooling
- Operator identification and support
- Strategic guidance and board oversight
- Cross-portfolio shared services and knowledge transfer
PortCo
Portfolio business responsibilities
Execution, customers, and day-to-day operational performance.
- Day-to-day operations and service delivery
- Customer relationships and retention
- Team management and local execution
- Revenue generation and pipeline management
- Implementation of HoldCo AI playbook
Entity Structure
Future State Operating Groups
A lean central HoldCo with distinct operating platforms focused on each service vertical. Each platform is independently led and operationally autonomous.
HoldCo
Future State
Lean holding company focused on M&A, AI, capital allocation, and operator support
M&A ExecutionAI Playbook & ToolingCapital AllocationOperator SupportShared Services
Primary Focus
Technology Services
Technology Managed Service Providers for SMBs
Service Areas
IT InfrastructureCybersecurityCloud ServicesIT SupportHelp Desk
Evaluating
Accounting & Advisory
Professional Accounting, Tax & CFO Advisory Services
Service Areas
Tax & ComplianceBookkeepingCFO AdvisoryPayroll Services
Evaluating
Property Services
Strata & Property Management Services
Service Areas
Residential StrataOwners CorporationCommercial PropertyFacilities Mgmt
Operating group names and structures are indicative. Sequencing reflects current development stage — Technology Services (MSPs) is the initial focus.
Operator Model
Each business is led by a proven CEO
The businesses we acquire will be run by experienced operators with real ownership and accountability. We back strong leaders and provide the infrastructure that makes them more effective.
Experienced operators lead each business
We acquire strong businesses and either back the existing leadership or install experienced CEOs who understand the industry and have the capability to execute the transformation.
Real ownership, real accountability
Portfolio CEOs are not managers. They are owners. Each operator has meaningful equity in the business they run, creating genuine alignment between performance and outcome.
HoldCo as a resource, not a constraint
The HoldCo team exists to support portfolio operators — providing capital, AI tooling, strategic guidance, and M&A capability. Portfolio businesses retain full operational autonomy.
Decisions sit where the information lives
Customer relationships, service delivery decisions, and day-to-day execution are handled at the PortCo level. HoldCo does not manage operations. It enables them.
The key investor question answered: “Who actually runs the businesses?” Experienced, owner-mentality operators who have the skills, the context, and the incentives to drive performance — supported by a HoldCo built to help them win.
Unfair Advantage
Why we have a right to win
Our competitive position is not theoretical. It is built on specific relationships, hands-on experience, and preparation work that new entrants cannot replicate quickly.
Proprietary deal access
Manny's deep industry relationships across the MSP market generate a direct pipeline of off-market acquisition opportunities — before they reach brokers or institutional buyers.
Operator-led due diligence
Dave and Kieran's backgrounds in roll-ups and technology mean we evaluate businesses from the inside out — identifying operational leverage that financial buyers routinely miss.
MSP operating experience
Kieran's direct operational background inside an MSP provides a ground-level understanding of where value is created, where costs are hidden, and where AI can have the highest impact.
Validated AI implementation playbook
We have already identified and tested the specific AI tools and implementation partners that drive cost reduction and enable AI-revenue expansion within MSP businesses.
Active pipeline already built
We are not starting from zero. Through market preparation work already completed, we have built an active pipeline of qualified acquisition opportunities ready to advance.
The Team
Operators. Investors. Dealmakers.
Three complementary backgrounds built for this exact strategy — market access, operational execution, and technology implementation.
D
Co-Founder
Dave Thompson
Operator with deep experience scaling and improving businesses across technology and services. Brings a track record in acquisitions, operations, and building teams that execute.
LinkedInK
Co-Founder
Kieran O'Neill
Operator and investor with backgrounds in technology, MSP operations, and roll-up strategy. Has worked directly inside an MSP and identified the specific AI tools that drive structural improvement.
LinkedInM
Co-Founder
Manny
Industry-connected dealmaker with deep MSP relationships and transaction experience. Primary source of proprietary deal flow and the connective tissue between the HoldCo and the industry.
LinkedInOur Vision
A next-generation compounder for the AI era
We are building a portfolio of essential service businesses that deliver structurally higher margins, leverage AI to improve operations and drive growth, and generate durable recurring cashflows.
These are not passive holdings. They are businesses that are continuously improved — through better tooling, smarter processes, and stronger operators — becoming more valuable over time.
Starting with MSPs. Expanding into adjacent verticals. Building a next-generation compounder for the AI era.
Get in Touch
Partner with us
If you are an MSP owner considering your options, an investor interested in the strategy, or someone who wants to understand more about what we are building — we would like to hear from you.
MSP owners — exploring succession, partnership, or acquisition options
Investors — interested in the HoldCo strategy or co-investment opportunities
Operators — experienced CEOs interested in leading a portfolio business
Or read our full thesis first: The Distribution Layer of AI →
Proven Playbooks
Built on proven models, adapted for the AI era
Our approach is informed by a set of proven HoldCo and capital allocation models. We are not inventing a new category from scratch. We are combining established playbooks in decentralised ownership, operator-led execution, and long-term compounding — and applying an AI-native layer to drive structural improvement.
Constellation Software
Decentralised compounder
Acquires niche, profitable businesses and operates them with a high degree of decentralisation. The core engine is disciplined capital allocation, long-term ownership, and continuous reinvestment of cashflows.
- Acquire profitable businesses at reasonable multiples
- Preserve autonomy at the operating level
- Maintain strong discipline around capital allocation
- Compound through repeatable acquisitions over time
Key insight:Scale is built through disciplined acquisition and reinvestment, not centralised control.
General Catalyst
Operator-led execution
Pairs capital with high-quality leadership. The core idea is that businesses perform best when they are led by strong, accountable operators with real ownership and the right support around them.
- Identify or install experienced CEOs
- Give operators meaningful autonomy and accountability
- Support them with capital, network, and strategic resources
- Drive performance through leadership rather than heavy central management
Key insight:Great outcomes are driven by aligned operators with ownership and support.
Enduring Ventures
Long-term HoldCo ownership
Focuses on acquiring durable, understandable businesses and holding them for the long term. The emphasis is on simplicity, durability, and disciplined stewardship rather than constant financial engineering.
- Buy simple, cash-generative businesses
- Hold for long-term compounding
- Keep central overhead lean
- Prioritise resilience and durability
Key insight:Long-term value creation comes from disciplined ownership of durable businesses.
Chenmark
Operator-first HoldCo
Builds a portfolio of independently run businesses led by strong operators. The model emphasises autonomy, long-duration ownership, and pairing each business with leadership that can drive performance.
- Acquire strong businesses with solid fundamentals
- Pair each with a dedicated operator
- Maintain local accountability and autonomy
- Support growth without over-centralising
Key insight:A HoldCo works best when great operators are empowered to run great businesses.
Our approach
Future State combines elements of these proven models:
- From Constellation: disciplined acquisition and capital allocation
- From General Catalyst: operator-led execution
- From Enduring Ventures and Chenmark: long-term ownership and decentralised operating structures
What makes our model distinct is the application layer. We are building an AI-native HoldCo that does not simply acquire and preserve cashflowing businesses. We aim to improve them structurally through automation, new revenue streams, and repeatable operational playbooks.
Disciplined acquisition. Strong operators. AI-driven improvement. Long-term compounding.