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09 November 2021

How PE firms can stand out as competition ramps up for tech targets

Private equity (PE) is growing, and it’s being deployed quickly. Global PE deal activity is at record levels, and PE is set to see its first trillion-dollar year ever. With this intense growth there are a few long-term trends in PE that are persistent. First is the dry powder as demand for the asset class continues to grow. Second is the penetration and growth of software and technology-enabled deals as a share of total deals. The interplay between software vs. tech-enabled businesses is driving the growth of software businesses, and there continues to be significant demand for that space from PE. Valuations for software economy and technology-enabled businesses continue to escalate as the search for growth intensifies. An EY article provides details.

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Document ID: 2021-6160

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