In brief
Recent trends in private equity tech investing point to a surge in take-privates, carve-outs and consortium deals as PE firms seek undervalued assets in the sector with the power to transform and drive growth in businesses across every industry.
In a keynote interview with Private Equity International, Eric Schwartzman discusses the factors fueling increased large-scale PE investments in tech, why carve-outs are becoming an increasingly popular strategy for PE funds, and the ongoing trend of take-private transactions. Eric also shares his thoughts on the growing number of consortium deals as PE tech transactions increase in size and offers insights into where PE firms may discover the most compelling opportunities in the tech industry heading into 2026.
Key takeaways
- With many larger listed technology companies trading at valuations that do not reflect their potential, private equity has an opportunity reinvigorate a company without the pressure of public ownership through a take-private or realize value in a non-core division of a company by carving it out from the parent to create a standalone business.
- Private equity is uniquely equipped to address the complexities of carve-out and take-private transactions to capture the upside in the investment with know-how and patient capital.
- Large deals often found in the tech sector are leading more private equity firms to spread the risk by partnering with other private equity firms, institutional investors and strategic buyers to make acquisitions.
- All of these deal types require careful planning, detailed awareness of the risks and true partnership with trusted advisors to navigate their unique complexities.