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Key people at Dry Line Partners.
Dry Line Partners is a private equity firm based in San Antonio and Austin, Texas, that acquires underperforming B2B software businesses with recurring revenue. The firm targets assets with low customer concentration and high retention, purchasing them at deep-value multiples like 1 to 2 times sales or 4 to 7 times pro forma EBITDA minus capital expenditures. Operating on a deal-by-deal basis, the firm focuses on companies with enterprise values around $100 million, while maintaining fewer than 25 employees and under $5 million in annual revenue. The portfolio includes investments in cybersecurity and data backup services, highlighted by its backing of Jungle Disk and the subsequent acquisitions of KeepItSafe, LiveVault, and OffsiteDataSync. The firm also expanded its software holdings by acquiring VizExplorer. Dry Line Partners is led by founders Michael Girdley, Matt Morris, and Bret Piatt.
Key people at Dry Line Partners.
Dry Line Partners is a private equity firm based in San Antonio and Austin, Texas, founded and advised by industry executives and investors. It focuses on acquiring B2B recurring revenue technology businesses, particularly small to medium-sized software firms with enterprise values around $100M, often underperforming ones with low customer concentration.[1][2][3][5] The firm's investment philosophy centers on partnering with exceptional companies for their next growth stage, providing hands-on support post-acquisition to drive measurable value for stakeholders through operational improvements.[3] Key sectors include B2B tech software, such as data visualization (e.g., VizExplorer), cloud storage (e.g., ElephantDrive, Jungle Disk), and cybersecurity/data protection (e.g., CyberFortress, KeepItSafe).[3] In the startup and tech ecosystem, Dry Line acts as an independent sponsor facilitating acquisitions, unlocking value in "unloved" software firms by enhancing their competitive moats and growth trajectories.[3][5]
Dry Line Partners emerged as a private investment firm targeting small to medium-sized acquisitions in the B2B tech space, though specific founding year and key partners are not detailed in available records.[1][3] Advised by industry executives and investors, it evolved from a focus on venture capital-like investments into a hands-on private equity model emphasizing post-acquisition collaboration with portfolio companies.[2][3] A pivotal early move was the 2021 acquisition cluster, including CyberFortress, OffsiteDataSync, KeepItSafe, Jungle Disk, and LiveVault in September, followed by ElephantDrive in March 2022—demonstrating rapid execution in consolidating data protection and storage tech assets.[3] The 2023 strategic investment in VizExplorer, acquiring all assets of its parent company, marked further expansion into analytics software, solidifying its track record in tech buyouts.[1][3]
Dry Line Partners rides the trend of consolidation in fragmented B2B SaaS and recurring revenue tech markets, where underperforming software firms seek partners to scale amid economic pressures like rising interest rates and competition.[5] Timing aligns with a shift toward operational turnarounds in "unloved" assets, capitalizing on market forces such as demand for secure cloud storage, data analytics, and cybersecurity—evident in its portfolio targeting these niches.[1][3][5] By acquiring and enhancing these businesses, it influences the ecosystem through value unlocking, enabling smaller tech players to compete against giants and fostering M&A activity via independent sponsor models.[3]
Dry Line Partners is positioned to pursue more acquisitions in resilient B2B tech subsectors like data protection and analytics, as trends in cybersecurity threats and AI-driven insights amplify recurring revenue demand. Evolving regulations and economic recovery could boost its influence by favoring hands-on PE over pure VC in mid-market software. Its focus on unloved firms suggests growing impact as a value creator in tech consolidation, potentially scaling its portfolio through strategic bundles like its 2021 deals.[3][5]
