VITG taps into Riverside investment to boost growth

Managed service provider (MSP) Virtual IT Group has secured investment from private equity firm The Riverside Company to improve its platform and accelerate growth via organic means and mergers and acquisitions.

According to Riverside, the investment will be focused on expanding its provision of outsourced IT services to mid- and large-sixed clients in Australia and New Zealand. Additionally, VITG will also bolster its cyber security and business continuity offerings.

While the size of the investment was undisclosed, VITG managing director Christian Pacheco will maintain his current position and status as a significant shareholder and will work with the VITG to tap into Riverside’s support.

 “We are pleased to find a like-minded partner who embraces our culture of collaboration and fostering lasting relationships, particularly in the M&A context where VITG has built a strong reputation in acquiring founder-led businesses,” Pacheco said.

“As a leading player in a consolidating IT services space, we are excited about what we can achieve together going forward – we are just getting started!”

Riverside Australia principal Nicholas Pejnovic said investing in “high quality technology-oriented B2B businesses” such as VITG has been a priority for the firm for many years.

“We bring access to a global network of experts to support the growth of these companies, which is one unique factor that Riverside offers its portfolio companies,” he said,

Kevin Xu, another Riverside Australia principal, claimed that the partnership will enable VITG to place more focus on organic growth.

“We will build out specialisations by industry and technical capability and continue to execute on strategic add-ons,” Xu added.

Both Pejnovic and Xu worked with Riverside Australia VP Jenny Guo and analyst Dominique Ling on the agreement, with the firm advised by Ad Astra Corporate Advisory and Herbert Smith Freehills. Meanwhile, VIGT was advised by Aller Capital and KPMG Law.

VITG’s investment arrangement with Riverside caps off the last two years for the MSP, which saw it made several acquisitions to become a business with over 250 employees and an annual turnover of more than $80 million as of March 2024.