Software Buyout Returns: Testing the Private Equity Premium Through Benchmarks and Indices

Software has reshaped the buyout market, attracting capital, commanding higher valuations, and expanding into private credit. But has the premium paid for software translated into cash returned to investors? Using Preqin Benchmarks and Indices data, this report tests software-exposed buyouts across performance, holding periods, entry valuations, realizations, and credit exposure.

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• Where the performance premium appears: Software-exposed funds recorded higher top-quartile IRR thresholds than buyouts excluding software in seven of the nine vintages from 2015 to 2023.

• How price compares with cash returned: The median entry multiple for software deals reached 21.3x in 2024, while 2021-vintage software-exposed funds have so far returned a DPI of 0.19x against a TVPI of 1.26x.

• Where concentration is emerging: Software and IT represent 27.4% of the buyout overhang by value, while software and tech borrowers accounted for 25.7% of BDC loan portfolios in 2025.

Read the full report to explore where software’s private equity premium has translated into realized cash – and where value remains on paper.