Tech MM PE Lanscape 2025
Wondering what the top MM (say like 1 - 10 bn fund size) Tech PE / buyout investors are these days? Also wondering who does and does not have any kind of edge in the space. There is a ton of tech-specific buyout investors and even more firms that invest in tech alongide other sectors. The type of firms I am looking for are STG, AKKR, and HG (though clearly much larger than the other two).
akkr top 3 at least
AKKR's portfolio is not that cool. Hg by far the best out of the three you listed.
Another good one could be Haveli Investments in Austin
Serent is also good (but slightly smaller)
Thank you appreiate it! I would love to get some insight on the broader MM Tech PE space if possible. I think I want to do MM/UMM Tech PE, so super interested in learning more about the space.
Not that many players outside of STG, Haveli, Hg that have a truly differentiated angle in MM Tech buyout PE (if not counting growth). It's a challenged environment even with Vista performing quite poorly.
Thoma is also good in the MM with its non-flagship funds. Software as a whole will be hard moving forward given the record-high valuations in the past years and the risk of AI disruption. Maybe can consider growth as well which broadens the spectrum to many MM growthy-buyout shops
I wouldn’t worry about coolness of the portfolio.. these are b2b software companies after all, how cool can they be? As an associate would focus on historical performance, brand, and where you’ll get real deal reps.
I am not particualrly interested in the coolness of the portfolio; really on what the best investing seats would be in the MM/UMM space. Really appreciate the names provided here, super helpful to get a better sense of what other names their are. Would love to get some more insight into the space as have been in banking only working with the larger investors.
Serent is lower middle market, investing in growthy $10-15M ARR founder business; they would be selling into Hg / AKKR, not really competing
thoughts on what MM/UMM people would join as an associate now over MFs? optimizing for fund growth trajectory, promotion path, long term comp, comparatively decent culture/wlb
for the European monkeys:
- Accel KKR
- Main Capital
- Maguar
- PSG
- Bregal Milestone
- Fortino
- Carlyle Tech EU
- Thoma Bravo MM Tech
- Inflexion tech team
- Tenzing (also do other stuff)
Oakley Capital also in Europe
I believe STG has also opened a European office
Would add Five Elms, Brighton Park, Rubicon Tech Partners, Cove Hill, Silversmith, and Baypine. BV and Main are sneaky good.
Five elms blows, rubicon portfolio is super mid, BPC really solid.
Would also add Genstar (Enverus), Veritas (not all tech, but obv), Court Square, AEA, Oak Hill (Calero), and HIG. MrHumans comments gets the must have names too
Accel-KKR is definitely a top 3 fund in the space, crazy returns
Is this why they pay associates below market
as long as they can get talent good enough to sustain those returns and pay below market, I don't see why they would raise pay.
i'm sure they have, and it does seem like retention is an issue, and the seniors at AKKR definitely come across as hella stingy. but the fact is their returns are top class (top decile for sure) and get away with paying associates low.
Here's who I see in market if I were to generalize MM strategies (some names clearly outperform others).
Value-Leaning:
In-Between:
Growth-Leaning:
who are the smartest investors in each bucket?
Thank you super helpful. Who do you think the smartest/best players are. This thread suggests AKKR is elite, but would love to get thoughts on the other names especially the more in-between and growth-leaning names.
This is where it gets a bit more opinionated / based on noise but here are my thoughts:
Value-Leaning:
STG is probably the strongest and most consistent here; Clearlake has grown quickly but also has a lot of questionable duds in their recent funds; Vector I have heard hasn’t done as well recentlyIn-Between: Francisco is my top choice based on fund progression, deal activity, and culture; AKKR gets both a good and bad rep according to WSO so it’s hard to say from the outside… I’ll leave it at that; Marlin Equity is one of the sharpest investors and on the other side of a transition period; Thoma is obviously the brand name of choice if you’re willing to grind your face off
Growth-Leaning: JMI is very strong based on prior funds but TBD on how well they can deploy their latest $3B; Vista is another brand name but seems to overpay (IMHO) so we’ll see; one firm I left out was TA Associates which is also at the top of the list for growth buyouts
Edit: Latest STG funds struggling per Pitchbook
Clearlake, Francisco and Summit are not MMs
“MM Strategies” - attention to detail
HIG Tech is really just tech-enabled business services (they love VARs), I don’t think they really have a single software company in their portfolio.
Any additional color as to players in the space? Trying to really make a list for recruiting and this post has been super helpful already, but would always appreciate some more insight and knowledge.
What is so nice about VARs? Always thought they had little moat and few ways to differentiate.
Don’t forget Five Arrows - it’s really cool
How much is comp at those funds? AKKR heard under-market are we talking $280 or around 250?
TA would assume high 300s and co-invest?
What about STG, Francisco Partners, or Great Hill?
250 first year 266 second
holy, akkr paying under market like hell. very curious how that 1y aso comp is with the co-invest.
any idea how comps looks like at senior aso and above for akkr? im imagining at the senior level akkr comp will outpace the other mms, because idk how those folks will tough it out w mediocre payouts after long years, especially with the elongated promotion cycle.
Bump here - what is comp at STG like?
Wheres WCAS?
Aren't they primarily a HC fund? Heard they are really good in the HC side but never really see them as someone in a tech banking program, so kind of assumed their Tech practice is pretty small.
Their latest funds aren’t doing very well. See Calpers link below. Some vintages still need time but doesn’t look great regardless.
https://www.calpers.ca.gov/investments/about-investment-office/investme…
Can anyone comment on players based or with offices in APAC?
For those in the know, Turn/River should be at the top of this list.
any insights on the associate experience? aren't they very sourcing heavy
So much of tech PE is cooked. Funds used to have alpha through their sourcing engine (like accel kkr). Basically they’d get some guy in nowhere America to accept a 7X ARR multiple for a rule of 90 business, then sell to buyout shops with multiple expansion + growth.
Low hanging fruit for vertical software tools have been built. AI first players are attacking these once sleepy markets now, but because there’s so much venture $, they raise from venture. And with larger and more growth shops, proprietary deals at below market multiples don’t exist anymore.
I’m bearish on the accel kkr version of tech (perhaps more apt to call them growth) Pe.
AKKR’s edge was never just cheap proprietary sourcing (though that's also an edge for them), that’s gone for everyone. Their real alpha is buy-and-build + integration in vertical software. They’re materially better than most sponsors at identifying add-ons and actually turning them into a coherent platform. I’m at a fund that looks at a lot of AKKR assets since we play up-market from their, and their portfolios consistently show stronger post-M&A integration than most PE shops.
AI raises disruption risk for legacy portco SaaS, but it also rewards true tech specialists in the longer-run. Firms like AKKR and Hg have diffrentiated insights and edge into tech through legacy knowldge, specalist networks, and more in-house value creation tech-specific capabilities compared to generalist or multi-sector funds. The ones who are far more likely to die are the MF "growth buyout arms" with no reason for existing other than AUM aggregation.
Also, AKKR isn't anywhere near fighting for survival, it's top-decile franchises. LPs are much more likely to give top-decile performers leeway for multiple fund cycles, even if short-term performance lags. Mid-tier funds don’t get that kind of runway, and are at far more risk.
Sourcing was AKKRs massive edge. Sourcing team is like 80% sourcing, I’m at a comparable fund and have interviewed kids from there.
Agreed it’ll exist, I think most large funds will continue to exist. But I’m arguing returns won’t be there.
Surprised more folks aren't mentioning Turn/River - last fund was ~double its predecessor and they have the ability to deploy enormous amounts relative to their fund size thanks to tons of co-invest (see Solarwinds). Not sure how current performance looks tho and think I've hear jr level is sourcing heavy
I think the lack of recognition is that people viewed them as a LMM investor until more recently when they've been punching up (Solarwinds to your point). Their fund growth has been consistent so I think Turn/River just need more time in mid-market for perception to change.
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