In this episode, our speakers explore how PE firms can position themselves to win tech deals in today’s highly competitive market.
According to the latest EY PE Pulse report, 2021 was the year of the tech deal: 30% of total capital deployed last year was allocated to technology companies. The technology sector, once just another industry vertical, now permeates every sector, claiming an ever-increasing share of deals as more companies differentiate themselves based on their technology regardless of the industry in which they sit or serve.
Crosspoint Capital focuses on the cybersecurity, privacy and infrastructure software sectors. PE firms that choose a niche specialization in the tech sector can bring deep sector expertise that translates to value creation for their portfolio companies. In an increasingly competitive tech environment, PE firms that focus on a highly targeted category of assets can find themselves in a differentiated position. They are able to quickly discern where to spend time, recognize the opportunities and limitations of an asset, and identify patterns indicative of future success.
Three characteristics of today’s tech deal environment include:
- Increasing presence of and need for club deals
- Increasing speed at which deals are clearing
- Developing deal theses early
For your convenience, full text transcript of this podcast is also available. Read the transcript.
Winna BrownEY Americas ESG Private Equity Leader; Partner, Private Equity Client Service, Ernst & Young LLP
Jeff VogelEY-Parthenon Americas Software Strategy Group Leader
Laura GrattanManaging Director, Crosspoint Capital
Duration 25m 00s
In this seriesseries overview
How PE firms can win tech deals
PE Pulse: Five takeaways from 4Q 2021
What AI has done for Hg
What PE sees in professional sports
PE Pulse: Five takeaways from 3Q 2021
How PE can plan for climate risk with confidence
Which three geopolitical risks PE investors should watch
How cybersecurity creates value in PE