In the Press
April 17, 2023

Why Private Equity Firms Still Love Enterprise Software (PE Hub)

Although tech M&A was “muted” in Q1, as technology-focused investment bank Union Square Advisors characterized it in a recent report, significant enterprise software deals closed, and others were announced. The burden of operating on the public market is huge for young companies, most of whom had a venture capital background, especially those that went public through an IPO or SPAC just before or during the pandemic, said Aly Simons, co-chair of the Technology M&A practice. For some enterprise software companies, it can take longer for them to secure contracts, a situation that could be challenging for some companies that are used to operating in a venture capital model of early wins. The advantage of private equity is that it “has a lot of patience,” Simons pointed out to PE Hub.