Private Equity International’s special report explores the current fundraising, dealmaking and exit environment for tech investments
Tech investing is being buffeted by many of the same headwinds impacting the wider private equity landscape, but it has so far displayed a marked resilience. In this report, we discuss the long-term trends underpinning investment in the sector, which verticals are seeing an uptick in PE interest, as well as how managers are navigating regulatory change and other macro challenges.
PE capital continues to target tech as strong fundamentals outweigh wider macro concerns
Private equity continues to back tech, with investors citing long-term trends, digital transformation and defensible revenue streams as key drivers.
LPs double down on tech as digital transformation accelerates
Funds with a technology focus continue to attract LP capital as tech products and services increasingly become a must-have across industry verticals.
DOWNLOAD THE MAGAZINE
ANALYSIS
PREVIOUS COVERAGE
Three key trends in tech investment
Despite a drop in fundraising, tech remains a promising sector for PE investing.
Regulation tightens its grip on tech deals
While the dealmaking climate may have been a little cool for the tech sector in recent years, regulators have been upping the heat on the market and a swathe of new rules look set to impact new transactions.
Permira on Gen AI’s role in driving product leadership
For portfolio companies, investing in generative AI offers an asymmetric risk return distribution with a positive skew, says Permira partner and co-head of technology Michail Zekkos.
Cybersecurity sparks back to life
Following a cooldown in deals, solid long-term growth drivers and attractive exit options have seen private equity managers lean into the cybersecurity space in ever greater numbers.
Montagu: Does AI mean new tools for every trade?
AI’s rapid development offers new avenues for creating value in portfolio companies, but deploying the tools successfully will require judicious experimentation and consistent investment, say Montagu’s Christoph Leitner-Dietmaier and Dr Mark Spiteri.
The Future 40 on the tech landscape
Dealmakers featured in PEI’s 40 under 40: Future Leaders of Private Equity 2023 and 2024 lists share their insights on tech.
Deloitte on driving value in tech
As competition for assets increases, investors are getting creative in identifying value, say Deloitte’s Ryan Jones and Nick Israni.
The most appealing opportunities for tech investors today
Investments in artificial intelligence, software and even government-related assets are driving activity in the sector.
Investing in tech is taking flight
Presenting seven private equity deals in the travel tech industry – a sector that's expected to reach $21bn by 2032.
Nordic Capital: Tech innovations aid transition from legacy systems
Technology and payments are undergoing rapid shifts, creating attractive investment opportunities, say Nordic Capital’s Mohit Agnihotri and Fredrik Näslund.
Davis Polk & Wardwell: Creative deal structuring spurs an uptick
Sponsors are thinking outside of the box to find pockets of capital and get deals over the line, say Jack Orford and Robert Smith, sponsor finance partners at Davis Polk & Wardwell.
LPs are becoming more discerning about technology investments amid a sector-wide slowdown, but opportunities are still plentiful for firms that are willing to take a long-term view. This special report looks at what is driving investor appetite for tech investments and examines how GPs are balancing risk with reward when it comes to artificial intelligence.
How PE is balancing risk with reward on AI
PE firms are hoping to capitalise on the growing interest in generative AI while managing some of the risks it presents.
UBS Asset Management: Tech remains a top priority
Technology will continue to be a core sector in private equity portfolios despite the recent correction, says UBS Asset Management’s head of multi-manager private equity Americas, Nicola Goll.
Baker McKenzie: How to navigate regulatory change in tech investing
PE firms should keep antitrust, national security and data protection issues in mind when executing deals in the technology industry, say Baker McKenzie’s Michael Fieweger and Matthew Jacobson.
What are LPs looking for in tech investments?
We explore how LPs are approaching technology allocations in a tough market and what tech-focused managers are doing to stand out from the crowd.
The private equity industry has been left reeling by recent volatility in the technology sector. In this special report, we examine how PE is remaining optimistic about tech despite ongoing disruption, renewing its dedication to value creation across the life cycle of an investment, and focusing on specific verticals such as enterprise software, cybersecurity and climate-related technology to maximise returns.
The fast-moving technology sector continues to attract private equity capital, with a continuing stream of deals across verticals and growing ticket sizes, as well as significant tech-focused fundraising activity. As competition ramps up and valuations remain high, this Private Equity International special report examines the sub-sectors turning GPs’ heads and asks how managers can stand out in a crowded market.
Fast-paced technological change has seen tech cease to be an industry vertical in its own right and become a horizontal, touching every corner of the market as it becomes more integral to our lives. Fund sizes are ballooning as tech becomes a broader, deeper market than ever before. Private Equity International takes a deep dive into the sector.
