Tech Investment Banking - when will it be “hot” again?

Associate 1 in PE - LBOs

Anonymous

Most Helpful

In tech now and I think vanilla PE tech deals haven’t fully gone away but will definitely come back full force in the next 1-2 years.

So many big PE firms have raised massive funds (Vista, TB, FP, HF, Hg, etc) + all the dollars all the MFs/UMMs are pumping into tech, they will need to exit these investments. Most are putting exits of big portcos on the back burner just while the market stabilizes, but they will need to start selling all the stuff the invested in 2019-2021 eventually.

Will the megacap public / strategic acquisitions and IPOs come back the same way they were happening in 2021? That’s a harder question, I don’t think it will rebound as quickly.

I’d be careful depending on the BB and what the group specializes in - vanilla PE deals are more than enough to keep the lights on at most banks, but some are much more focused on IPOs/SPACs / strategic work that they won’t be as well-positioned IMO.

Also a question of interest - lots of people choose tech to do work on the next Uber IPO or twitter take private, and I wouldn’t expect to go work on that kind of landmark deal in the near future. But if you’re excited about selling random SaaS cos to Vista, plenty of that still is happening / will continue to happen

Authored by: Certified Private Equity Professional - 2nd Year AssociateCertified Private Equity Pro

Lockwood

In tech now and I think vanilla PE tech deals haven't fully gone away but will definitely come back full force in the next 1-2 years.

So many big PE firms have raised massive funds (Vista, TB, FP, HF, Hg, etc) + all the dollars all the MFs/UMMs are pumping into tech, they will need to exit these investments. Most are putting exits of big portcos on the back burner just while the market stabilizes, but they will need to start selling all the stuff the invested in 2019-2021 eventually.

Will the megacap public / strategic acquisitions and IPOs come back the same way they were happening in 2021? That's a harder question, I don't think it will rebound as quickly.

I'd be careful depending on the BB and what the group specializes in - vanilla PE deals are more than enough to keep the lights on at most banks, but some are much more focused on IPOs/SPACs / strategic work that they won't be as well-positioned IMO.

Also a question of interest - lots of people choose tech to do work on the next Uber IPO or twitter take private, and I wouldn't expect to go work on that kind of landmark deal in the near future. But if you're excited about selling random SaaS cos to Vista, plenty of that still is happening / will continue to happen

This guy is right.

Mega deals aren't coming back for a year minimum but we are being kept busy in the BB "midmarket" range of £500-750m. Lots of upcoming sellsides. Just no IPOs.

I wouldn't get too caught up around where you work in tech until you're more senior. Just try to get experience across a few areas.

London Sponsors M&A - EB

Pussy galore

This is completely false but alright. Tech will be dead for a long time (decade or more) as will most sectors / industries. We had a great 40 year run but now it's going to be painful for quite a while.

I appreciate the optimism, though.

Authored by: Certified Private Equity Professional - 1st Year AssociateCertified Private Equity Pro

6 replies

SBF's_accountant

I take it you are at Morgan Stanley - I would suggest joining the rotational pool and doing at least one rotation w/ Tech. You can feel out the environment while you are there and see if you like the people. But given the strength of the platform, there will be deal flow in almost any environment. If you are indeed at MS, I would try to get close to the Tech M&A group in particular (small M&A team that sits within Tech - great place to land imo)

Analyst 1 in IB-M&A

Anonymous

To be honest, tech M&A has slowed but buyouts have been pretty active, far more than any sectors. Just look at the amount of deals Thoma and Vista has done in past 6 month vs any other sponsor.

Financial Analyst Work Life Balance

Associate 1 in PE - LBOs

Anonymous

Tech M&A is more active than most other industries. It's financing that has fallen off a cliff

Analyst 1 in IB - Cov

Anonymous

What does the strategic landscape look like in tech markets?

Analyst 1 in IB - Cov

Anonymous

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