What is the consensus on the best platforms to be at today for Tech PE across MF / UMM / MM / LMM? I am a first-year (ignore title) interested in tech investing and want to know more heading into recruiting.
Based on the most helpful WSO content, here are some of the top platforms in Tech Private Equity (PE) across various fund sizes:
Mega Funds (MF):
Thoma Bravo: Renowned for its focus on software and technology investments.
Vista Equity Partners: A leader in enterprise software and data-driven investments.
Silver Lake: Specializes in large-scale technology investments.
Upper Middle Market (UMM):
Francisco Partners: Known for its expertise in technology and tech-enabled businesses.
Warburg Pincus: Strong tech vertical with a global presence.
TPG: Active in tech through its growth and capital platforms.
Middle Market (MM):
Insight Partners: Focuses on growth-stage software and tech companies.
Accel-KKR: Targets mid-market software and IT-enabled businesses.
TA Associates: Invests in profitable growth companies, including tech.
Lower Middle Market (LMM):
Veritas Capital: Focuses on tech-driven companies, particularly in government and healthcare sectors.
The Riverside Company: Active in tech-enabled services and software.
These firms are highly regarded for their tech verticals and investment strategies. If you're heading into recruiting, aligning your interests with the specific focus areas of these funds (e.g., software, IT services, or tech-enabled businesses) can help you target the right opportunities.
Not sure how H&F was beat out by Silver Lake (maybe if you narrowly focus on firms that exclusively do tech); H&F are some of the best HCIT + software investors historically. Seems like they got a bit undisciplined with valuation in the last cycle (like all other sw PE funds) and are paying for their sins. They should fare better than your Vistas/SLs on MOIC perspective given asset quality/ compounding, but IRR on 21-23 vintage tech investments are likely to be lower
Clearlake hasn’t been performing well - Veritas has been doing exceptionally well (top decile) but is a mix of govt & technology (think digital automation for the govt, A&D, regulated tech)
For ppl that are mentioning SLP because of EA…… just wait until the details come out LOL. Obviously they are one of the absolute top shops, but that deal is a bit of a meme
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Based on the most helpful WSO content, here are some of the top platforms in Tech Private Equity (PE) across various fund sizes:
Mega Funds (MF):
Upper Middle Market (UMM):
Middle Market (MM):
Lower Middle Market (LMM):
These firms are highly regarded for their tech verticals and investment strategies. If you're heading into recruiting, aligning your interests with the specific focus areas of these funds (e.g., software, IT services, or tech-enabled businesses) can help you target the right opportunities.
Sources: Are top MFins target programs for Private Equity firms?, This is the perfect time to go into VC, Tech-focused PE funds?, Venture Capital Salary versus BB and Private Equity, Private Equity vs. Venture Capital in 2018
Veritas aint LMM
This whole list is wrong
Thoma Bravo and Silver Lake and nobody else really comes close. Vista used to be up there but they’ve fallen off a cliff
How about Legacy MFs?
Not sure how H&F was beat out by Silver Lake (maybe if you narrowly focus on firms that exclusively do tech); H&F are some of the best HCIT + software investors historically. Seems like they got a bit undisciplined with valuation in the last cycle (like all other sw PE funds) and are paying for their sins. They should fare better than your Vistas/SLs on MOIC perspective given asset quality/ compounding, but IRR on 21-23 vintage tech investments are likely to be lower
Silver Lake if you want a more generalist tech experience and Thoma if you want to focus on enterprise software
Veritas and Clearlake
Clearlake hasn’t been performing well - Veritas has been doing exceptionally well (top decile) but is a mix of govt & technology (think digital automation for the govt, A&D, regulated tech)
Yah, I think of Veritas as TES vs. a pure play software player like TB
Clearlake is a dumpster fire
Who is best among the Mega Funds? How is EQT?
New School Tech Only: TB, Vista, SLP
Megafund: H&F, Advent, Warburg
Appropriate timing - SLP on that 50B buyout for EA is putting them boys back on top.
Nothing like washing the Saudi’s money for a 10% IRR
SLP - TikTok and EA recently
Silver Lake. And yeah Thoma
Thoughts on TPG?
For ppl that are mentioning SLP because of EA…… just wait until the details come out LOL. Obviously they are one of the absolute top shops, but that deal is a bit of a meme
Quo sit perferendis sit sed rerum. Provident corporis voluptatem perspiciatis molestiae id maxime. Nulla neque officiis ut officia. Explicabo laboriosam velit est dolorem non.
Veniam nesciunt optio laboriosam vero. Illo ea et voluptates distinctio modi ea. Perferendis quia nihil doloribus doloremque molestias veniam rerum dolor. Modi qui quisquam non a voluptatem.
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Molestiae consequatur quis debitis ratione. Delectus quia architecto ducimus quia. Est harum consequatur asperiores rem est. Dolores odit recusandae praesentium velit exercitationem cumque aut. Rerum quia et quisquam est dolore facere. Aut cum aut sit ut quibusdam sequi mollitia.