Though software companies may sprout in the fertile Silicon Valley, pollinated by a swarm of venture capitalists who devote their careers to identifying, financing and supporting smart SaaS concepts, the startups that thrive eventually need a bigger boost. And a leveraged buyout or hefty growth equity investment from a PE firm or institutional investor can provide the right kind of capital for expansion.
Beyond the startup stage, PE investing in software has recently dominated the take-private strategy, whereby firms buy out shares of publicly traded companies. IT deals made up nearly half of all take-private deals last year, and the total value of those deals made up a whopping 71% of all public-to-private buyouts, according to PitchBook’s 2022 Annual US PE Breakdown.
When the view is broadened to include the flourishing secondaries marketit’s clear that opportunities abound for PE software investments.
But which firms are closing the most deals? Here are the most-active investors in PE-backed software deals globally since 2018.
Methodology: Lists of the most active investors are based on a tally of relevant deal types as defined by PitchBook. These deal types align with existing PitchBook report methodologies.
Correction: An earlier version of this list incorrectly referred to PSG as Providence Strategic Growth. (Feb. 28, 2023)
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