Financing the MSP Roll-Up: What Lenders Actually Look For - with Reed Van Gorden, Deerpath Capital

Описание: Private credit has quietly become one of the biggest drivers behind MSP growth and consolidation — yet few founders truly understand how lenders think.

In this episode of M&A Insights, Madhur Duggar sits down with Reed Van Gorden, Head of Origination at Deerpath Capital, to unpack IT services financing from the lender’s perspective. Reed shares how private credit firms evaluate MSPs, why lenders are increasingly attracted to the IT services sector, and what separates a financeable business from one that struggles to secure capital.

The conversation covers Deerpath’s lending model, underwriting frameworks, and the key metrics lenders focus on — including recurring revenue quality, contract structures, customer concentration, and management dependency. Reed also explains how private equity sponsors and lenders work together during acquisitions and growth phases, typical deal structures and loan terms, and what MSP owners can do today to position themselves for better financing outcomes.

If you’re an MSP owner thinking about acquisitions, growth capital, or a future exit, this episode offers a rare look inside the credit playbook behind today’s deals.

Topics covered:

Why private credit lenders like IT services businesses?
How MSPs are evaluated during underwriting
Recurring vs. re-occurring revenue from a lender’s lens
Contract length and revenue visibility
Why are sponsors so important for Lenders when doing their due diligence?
Common financing structures and terms in MSP transactions
Practical advice for founders seeking capital
The state of private credit lending and what could cause it to turn
This podcast is hosted by Madhur Duggar. Madhur is a Senior M&A Advisor at Excendio Advisors and focuses on IT Services

Reach out to Madhur at [email protected] or 212.731.4230

Book an Appointment with him on his LinkedIn at (34) Madhur Duggar | LinkedIn

Check out Excendio Advisors and our amazing content at www.excendio.com

Reach out to Reed Van Gorden on his LinkedIn at Reed Van Gorden | LinkedIn

www.linkedin.com/in/madhur-duggar