Strategy in Focus: Tech

In our latest guide for LPs, we examine the opportunity for investing in technology-focused private equity and venture capital funds and how it compares to public markets.

• Since 2018, tech buyout funds have outperformed public equity indices and Preqin‘s buyout index, but we see recent significant divergence between top- and bottom-quartile funds 

• Europe-focused private equity tech funds raised more capital than North America-focused in only four of the last 25 quarters. But the amount raised in Q1 2024 is double that of North America as investors switched focus, attracted by higher returns from Europe tech 

• Software deal-making is driving tech buyouts, while the VC tech deals market is returning to pre-pandemic levels 

• In a tougher fundraising environment, the average targeted private equity tech fund size has dropped to $162mn, lower than the 10-year average of $254mn