Clearlake Capital Continues Assertive Investment Strategy With $5.4B Quest Software Acquisition

Clearlake Capital, a Santa Monica, California-based private equity investment firm, has spent 2021 on a mission to drive high growth and innovation across its portfolio, and its successful track record of investing in enterprises and entrepreneurs makes it an attractive backer. In fact, the company has been named to Inc.'s third annual Founder-Friendly Investors list, recognizing Clearlake for its owner and entrepreneur-focused approach to investing in the technology, industrial, and consumer sectors. In 2021 alone, the firm has made at least 11 platform investments and 38 add-on investments, including investment management software company Confluence.

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To further its mission, Clearlake is purchasing Quest Software from Francisco Partners for a reported $5.4 billion. Based in Aliso Viejo, California, Quest provides enterprise IT management solutions to healthcare and public sector enterprises, including federal, state, and local governments. Formerly a subsidiary of Dell, Quest has been under the Francisco Partners umbrella since 2016, when the company was acquired for around $2 billion; the Clearlake deal amounts to a profit of over 200%. Clearlake has a particular interest in Quest’s security and identity segment, which is growing twice as fast as its core business. Quest-owned One Identity also recently acquired OneLogin, expanding its security technology capabilities and offerings for commercial, mid-market, and Fortune 500 companies.