TMT/Industrial Tech-Focused MM PE Firms

I'm halfway through my third year at my current fund. Received top marks during my annual and have a clear path to a promotion, but I know it is not a place I want to be long-term due to their investment style, industries of focus, etc. It was a great place to land as my first role in PE. After 2.5 years, however, I have a much better grasp on what I'm looking for long-term. I just let headhunters know that I'm searching, but wanted to see if the WSO community could point me towards any interesting firms that I should keep top of mind or try to network into. 

I narrowed down what I'm looking for in my next shop. The list includes: 

  • Industry focus on TMT or industrial technology (NOT generalists)
  • Middle-market focus  (i.e., current fund size of ~$400M roughly)
  • Desire to grow the fund (i.e., target fund size of close to $1B)
  • Growth equity / buy-outs

Comments (9)

Most Helpful
Dec 29, 2021 - 4:54pm
Your boy Blue, what's your opinion? Comment below:

I am pretty familiar with the industrial technology sector. The term is thrown around loosely and PE firms often play in various subsectors, but CORE in Chicago and LLR in PA are firms I've had good interactions with personally. LLR has a strong industrial technology practice and good culture, but their fund size is closer to $2B...

How important is industry focus versus fund size to you? Specialization is much more common in the UMM space than LMM space from what I've seen so you might want to prepare for trade-offs on those two points when you're comparing offers. 

Array

  • 2
Dec 29, 2021 - 5:19pm
fuzzy_stocks, what's your opinion? Comment below:

A few:

  • OceanSound (NYC):
    • Veritas spin
    • $300mm inaugural fund closed July 2020, undersubscribed to $750mm target
  • Diversis (LA):
    • Closed $675mm fund II in September 2021, oversubscribed to $500mm target
  • Vertica (NYC):
    • $205mm inaugural fund closed March 2020, "significantly oversubscribed" per press release
  • ParkerGale (CHI):
    • Chicago Growth Partners and William Blair spin
    • Closed fund II in 2018 at hard cap of $375mm, oversubscribed to $300mm original target
  • Periscope Equity (CHI):
    • Closed $225mm fund II in December 2020, oversubscribed to $200mm target

Edit:

  • CIP Capital (NYC):
    • DLJ (Credit Suisse) Merchant Banking spin
    • Announced $700mm fund III in 2019 (unsure on status)
Jan 3, 2022 - 5:15pm
kuf135, what's your opinion? Comment below:

If you're talking about software with industrial applications (MES, plant mgmt, PLM, CMMS etc) - almost all major software funds will invest here. If you're talking about industrial tech like hardware technology, there's less specialized funds to my knowledge (a lot of risk and capital intensive space) but I know battery ventures does some things in this area in their growth and growth buyouts strategies (mainly buy and builds).

Jan 5, 2022 - 10:07am
RedWhiteAndBlue, what's your opinion? Comment below:

Here's a couple more. Most are fairly broadly oriented across software.

Boston

- M33 Growth: last fund was 250mn. General Catalyst spinout.

- Wavecrest: last fund was 290mn. Ex. BCV/Vista.

- Denali: first fund was 167mn. Ex. Summit.

- Elephant: last fund was 600mn. Ex. Highland 

New York

- Radian Capital: last fund was 300mn. Ex. BCV/FTV.

Austin

- Elsewhere Partners: last fund was 180mn. Ex. Austin Ventures.

Denver

- Crest Rock: closed first fund at 400mn. Ex. Marlin.

  • 1
  • Analyst 2 in IB - Cov
Jan 5, 2022 - 4:03pm

Minima voluptas inventore voluptatem aut. Maiores nemo eius voluptas magni blanditiis magnam et. Sint qui est est corrupti nihil eius repudiandae.

Saepe voluptate voluptatem nesciunt voluptatem magnam. Suscipit eius autem sunt voluptatem. Magnam officiis velit fugiat hic harum. Ad veritatis similique quam mollitia omnis. Esse molestiae et in natus omnis. Deleniti commodi ducimus praesentium quo voluptas labore est.

Start Discussion

Career Advancement Opportunities

July 2022 Private Equity

  • The Riverside Company 99.4%
  • Apollo Global Management 98.9%
  • Warburg Pincus 98.3%
  • KKR (Kohlberg Kravis Roberts) 97.7%
  • Blackstone Group 97.2%

Overall Employee Satisfaction

July 2022 Private Equity

  • Blackstone Group 99.4%
  • The Riverside Company 98.9%
  • KKR (Kohlberg Kravis Roberts) 98.3%
  • Ardian 97.7%
  • Bain Capital 97.1%

Professional Growth Opportunities

July 2022 Private Equity

  • The Riverside Company 99.4%
  • Warburg Pincus 98.9%
  • Bain Capital 98.3%
  • Apollo Global Management 97.7%
  • Blackstone Group 97.2%

Total Avg Compensation

July 2022 Private Equity

  • Principal (8) $676
  • Director/MD (20) $595
  • Vice President (79) $360
  • 3rd+ Year Associate (81) $273
  • 2nd Year Associate (183) $266
  • 1st Year Associate (348) $226
  • 3rd+ Year Analyst (27) $157
  • 2nd Year Analyst (71) $134
  • 1st Year Analyst (212) $120
  • Intern/Summer Associate (24) $69
  • Intern/Summer Analyst (251) $58