Juan Fernandez, a veteran in the managed services provider sector, has launched the MSP Owners Group, a new initiative designed to support small to midsize managed service providers. The organization emphasizes community-driven growth and enables companies to maintain their culture while scaling operations. With its initial acquisitions of ProdigyTeks and Cool Technology Group, the MSP Owners Group aims to provide resources and a collaborative environment for its members. Paco Lebron, former CEO of ProdigyTeks, has been appointed CEO of the MSP Owners Group and stresses that the organization is not focused on traditional growth metrics like earnings before interest, taxes, depreciation, and amortization, or EBIDTA. Instead, it seeks to assist struggling providers in growing while upholding their core values. This initiative is viewed as a significant shift in the industry, moving away from private equity-driven models toward a more supportive and community-oriented approach.
Why do we care?
The traditional PE model views MSPs as cash-flow vehicles ripe for centralization and optimization. But what Fernandez and Lebron are suggesting is that the real asset in an MSP isn’t just MRR—it’s trust, relationships, and values. Their pitch is that growth doesn’t have to mean cultural erosion.
That will resonate with many owners who:
- Don’t want to “sell out” but need help scaling
- Are burned out but not ready to walk away
- Want to stay involved but offload some burden
For MSPs navigating whether to grow, exit, or merge, this model represents a third path—and it’s starting to gain traction.
This is a strategic evolution in MSP financing—and one that’s gaining legitimacy. We are now witnessing the rise of rollup alternatives rooted in peer support, long-term vision, and sustainable growth. These models will not replace private equity—but they will exist alongside it, offering owner-operators more nuanced exit or collaboration paths.
IT service providers should view this as a viable strategic path—particularly those who are “too small for PE,” culturally wary of outsiders, or want to keep leadership within the community. Whether it’s MSP Owners Group, Empath, or future models to come, the M&A conversation in the channel is maturing, and these new structures will be part of the next generation of growth stories.
For those tracking my predictions, I called this one, just was off on the timing.