The World’s Top 18 Technology Private Equity Firms

What are technology private equity firms?

Technology private equity firms invest in tech companies, typically in the form of equity, intending to generate a return on their investment.   

Technology private equity firms typically raise capital from institutional investors such as pension funds, endowments, and sovereign wealth funds, as well as from high-net-worth individuals and family offices.  They then use this capital to make investments in technology companies, either through purchasing a controlling stake in the company or through a minority investment.

They usually generate returns through growth, operational improvements, and/or a future exit event, such as an initial public offering or acquisition.

These firms typically focus on investing in companies that are in later stages of development and have established revenue streams and customer bases. They may also provide operational and strategic support to the companies they invest in.

Rise of technology private equity firms

Technology private equity firms have become increasingly popular in recent years as technology has become a major driver of economic growth and innovation. They may focus on specific technology sectors such as software, hardware, the internet, e-commerce, healthcare technology, and many more. These firms may also focus on specific regions or countries, such as the US, China, India, and Europe.

Another reason why technology goes so well with private equity is the strength of the software business model.  In software, a company’s cash flows tend to be defensible and predictable.  That means that banks are more comfortable lending to these firms.  This, in turn, means that private equity firms are able to invest in them using a leveraged buyout model.

While nearly all firms contained on this list specialize in leveraged buyout models, note that there are other firms that aim to generate returns through growth in technology or software businesses.  This is more popular in growth equity or middle market private equity.

Criteria of top firms

I’ll caveat upfront that this is not an objective or scientific list.  

Rather, it’s a subjective list based on which firms seem to be at the top of their game.  In a way, I asked myself where would I (as an industry observer) or other industry professionals in the field be MOST EXCITED to work for or to start their career at (if we were starting today).  

In the following sections, I list top firms by major city.  While many firms have multiple offices, they are listed in the city in which they are headquartered.

Top tech private equity firms in San Francisco

Silver Lake Partners

San Mateo, California

Silver Lake is a firm of tech-savvy investors. They are the driving force behind some of the most innovative and disruptive technology companies of our time. With a keen eye for spotting industry-changing trends and a deep understanding of the inner workings of tech companies, Silver Lake continues to lead the charge in shaping the future of technology. 

Select Investments: Dell Technologies, BYJU’s, GoDaddy, Airbnb, Ant Group and many other companies across various industries.

Offices: Apart from their office in Silicon Valley, they have offices in New York, London, Hong Kong.     

Accel-KKR

Menlo Park, California

Accel-KKR are the quiet partners behind the success of some of the world’s most dynamic and innovative companies. Founded in the early 2000s by venture capital firm Accel Partners and Kohlberg Kravis Roberts, Accel-KKR (now independent) has a reputation for identifying the next big thing before it becomes a household name. Whether through strategic investments, operational support or a combination of both, they are dedicated to helping their portfolio companies achieve their full potential and become industry leaders. They are the catalyst that helps companies achieve the impossible and a key player in shaping the future of business.

Select Investments: Pegasus, Salary.com, Recurly

Offices: Accel-KKR has offices in Menlo Park, Atlanta, London, and Mexico City

Hellman & Friedman

San Francisco, California

Hellman & Friedman is a company of extremely smart investors. People in the industry know Hellman & Friedman as some of the smartest folks in the room.  Born from the brilliant minds of Warren Hellman and Tully Friedman, this private equity firm has been making waves in the technology investment world for decades.

Select Investments: Formula One, NASDAQ, Checkmarx, Mondrian, Scout 24 and many more.

Offices: Hellman & Friedman has two other offices in New York and London.

Honorable Mentions

• Francisco Partners
• Genstar

Top tech private equity firms in Texas

Vista Equity Partners

Austin, Texas

Vista Equity Partners, a private equity firm, is a force of innovation and growth. Founded in 2000, they have been at the forefront of shaping the technology landscape and have a reputation for identifying and nurturing game-changing companies. They have a diverse portfolio of companies, ranging from software to digital marketing and have helped them reach new heights of success. Their secret recipe? A unique combination of operational expertise, long-term investment horizon and strategic partnerships sets them apart.

Select Investments: AppFolio, Web.com, Infoblox, Solera Holdings, Cvent

Offices: They have offices in Hong Kong, New York, San Francisco, Oakland, Chicago, Singapore and, of course, Austin.

Top tech private equity firms in Chicago

Thoma Bravo

Chicago, Illinois

Thoma Bravo is an incredibly well-respected firm in the world of technology private equity investing. They have a history turning software companies into industry titans (or super high return investments). With a unique approach to investing that’s part art, part science and a relentless drive to see their portfolio companies soar to new heights, Thoma Bravo is a force to be reckoned with in the private equity world. 

Select Investments:

Offices: They have additional offices in London, Miami, and San Francisco

Top tech private equity firms in Boston

Providence Equity Partners

Providence, Rhode Island (near Boston)

Providence Equity Partners is a private equity powerhouse shaping the media and communications landscape for over 30 years. With over $50 billion in assets under management, they have a portfolio that spans the globe, including companies like Warner Music Group, Blackboard, and Bresnan Communications. Their company portfolio has a combined revenue of over $200 billion, and they have been instrumental in driving innovation and growth in the media and communication sectors. They have a knack for identifying opportunities and providing the resources and expertise that companies need to succeed.

Select Investments: TenStreet, Seesaw, Smartly.io, RentPath etc.

Offices: Providence Equity is headquartered in Providence, Rhode Island with additional offices in New York, Boston, London and Atlanta.

Spectrum Equity

Boston, Massachusetts

Spectrum Equity was founded in 1999, and it has dazzled the industry with its portfolio of disruptive companies totalling over $10 billion in assets under management. They’ve invested across the technology and software spectrum, including in companies that are revolutionizing how we consume media and transforming how we buy in e-commerce. Spectrum Equity has played a pivotal role in shaping the modern digital landscape.

Select Investments: bitly, customer.io, GoodRx and many more.

Offices: Spectrum Equity has another office in San Francisco, California.

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Top tech private equity firms in New York

Warburg Pincus

New York

Warburg Pincus, the global private equity giant, has been a driving force in the world of finance for over half a century. With a portfolio valued at over $60 billion, they’ve invested in some of the world’s biggest and most successful companies.  While they invest in other sectors too, they’ve made incredible waves in the software and technology spaces. Founded in 1966, they’ve been at the forefront of industry disruption and innovation, constantly pushing the boundaries of what’s possible in the world of private equity.

Select Investments: BEA Systems, Neustar, CrowdStrike and Avalara

Offices: The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore.

Welsh Carson

New York

Not necessarily a household name, within the industry Welsh Carson is known as a very strong technology focused private equity firm.  (Additionally, they also invest in healthcare.) Founded by Neil H. Welsh and Alan S. Carson in 1979, this private equity firm has been leaving its mark on the world of finance for decades. With a portfolio as diverse as a rainbow and assets under management of over $20 billion, Welsh Carson is a true master of its craft. Whether it’s healthcare or technology, this firm has a knack for identifying and investing in the next big thing.

Select Investments: LINQ, Decision One, Headstrong

Offices: They have another office in San Francisco, California.

Honorable Mentions:

• BlackStone
• KKR

Top tech private equity firms in Washington DC

Carlyle

Washington, D.C.

Carlyle Group, a private equity powerhouse with a $222 billion portfolio, has a storied history dating back to 1987. Founded by a group of Washington insiders, the firm has played a role in some of the biggest deals and controversies of the past three decades

Select Investments: Hack the Box, Abrigo, Agilox

Offices: They have offices across three continents: Asia, North America and Europe.

Top tech private equity firms in London:

Permira

London, UK

Permira is an incredible name in the world of private equity. Founded in 1985, this investment firm has been at the forefront of shaping the future by backing some of the most dynamic and exciting companies globally. With a portfolio spanning various sectors, such as technology, consumer, healthcare, and financial services and over $30 billion in assets under management, Permira is a true heavyweight in the industry, known for its ability to identify and invest in strong technology companies and to generate return.

Select Investments: McAfee, Gocardless, Genesys, Fullstory

Offices: The firm is headquartered in London with offices in California, Paris, Frankfurt, Shanghai, New York

Honorable Mentions:

• Vitruvian Partners
• Hg Capital

Top tech private equity firms in Los Angeles

Platinum Equity

Beverly Hills, California

Platinum Equity is a private equity firm that has transformed many companies into strong performers. Founded by Tom Gores in 1995, this firm has a proven track record of acquiring, revitalizing and growing businesses to achieve their full potential. While Platinum invests in other industries as well, their technology practice is an influential part of its many billion in assets under management.

Select Investments: Solenis, McGraw Hill, Urbaser

Offices: The firm is headquartered in California with offices in Boston, Greenwich, London, Singapore, New York

Software private equity firms

While I’ve used the term “technology private equity firms” primarily in this article, the term is almost synonymous with “software private equity firms” given the ubiquity of software. 

However, there is a slight nuance to be aware of: software is part of technology, but technology can include many other kinds of business other than software (e.g. hardware).  In this way, if a firm is “technology” investor, they would have a broader criteria than if they were “software” investors.

That said, there is a lot of overlap between software and technology private equity firms since many companies develop software as part of their products.

Investment strategies of top technology private equity firms

Leveraged Buyouts (LBOs)

• Many top technology private equity firms, like Silver Lake Partners, specialize in leveraged buyouts (LBOs). This strategy involves using a combination of equity and significant amounts of borrowed capital to acquire controlling stakes in established tech companies. The goal is to improve operational efficiency, increase profitability, and eventually exit through a sale or public offering, generating substantial returns.

Growth Equity

• Firms like Accel-KKR focus on growth equity, targeting companies in the later stages of development with the potential for significant revenue expansion. These firms typically invest in tech companies that have proven business models but need capital for scaling operations, entering new markets, or launching new products. Unlike LBOs, growth equity investments often involve taking minority stakes, allowing the original founders to retain control while benefiting from strategic guidance.

Sector-Specific Focus

• Some private equity firms concentrate on specific sectors within technology. For instance, Thoma Bravo is known for its deep expertise in software and cybersecurity, where it seeks to build industry leaders through targeted acquisitions and strategic growth initiatives. This focused approach allows firms to leverage deep industry knowledge, enhancing their ability to identify and grow promising companies within their niche.

Operational Improvements

• Vista Equity Partners exemplifies a strategy centered around operational improvements. After acquiring tech companies, Vista employs a rigorous playbook to streamline operations, optimize processes, and enhance profitability. This approach often involves implementing best practices in areas like sales, marketing, and product development to drive growth and increase enterprise value.

Strategic Partnerships and Ecosystem Building

• Providence Equity Partners employs a strategy of creating value through strategic partnerships and ecosystem building. By connecting portfolio companies with complementary businesses within their investment network, they foster synergies that drive innovation and growth. This collaborative approach not only enhances the performance of individual investments but also strengthens the overall portfolio.

Success stories of top technology private equity firms

Understanding the success stories and strategic exits of top technology private equity firms can give you insights into how these firms create value and drive growth in their portfolio companies. The following case studies illustrate how firms like Silver Lake, Thoma Bravo, Vista Equity Partners, and Accel-KKR have achieved significant returns through their targeted investment strategies.

Silver Lake Partners and Dell Technologies

• Silver Lake Partners made headlines with their involvement in the leveraged buyout of Dell Technologies. In 2013, Silver Lake partnered with Michael Dell to take the company private in a $24.4 billion deal. The move allowed Dell to restructure away from public market pressures. In 2018, Dell returned to the public markets with a valuation significantly higher than its privatization, showcasing Silver Lake’s expertise in driving operational improvements and strategic growth.

Thoma Bravo and SolarWinds

• Thoma Bravo’s acquisition of SolarWinds exemplifies its approach to building market leaders in software. Acquired in 2016 for $4.5 billion, Thoma Bravo implemented operational enhancements and strategic shifts that improved SolarWinds’ profitability and market position. Thoma Bravo led SolarWinds through a successful IPO in 2018, highlighting its ability to create value through hands-on management and deep sector expertise.

Vista Equity Partners and Marketo

• Vista Equity Partners acquired Marketo, a leading marketing automation platform, in 2016 for $1.8 billion. Vista focused on operational improvements, leveraging its standard playbook to streamline Marketo’s processes and enhance its product offerings. Just two years later, Adobe acquired Marketo for $4.75 billion, more than doubling Vista’s investment and underscoring the effectiveness of Vista’s operational strategies.

Accel-KKR and Recurly

• Accel-KKR’s growth equity investment in Recurly, a subscription billing management platform, demonstrates their ability to scale promising tech companies. After their investment, Accel-KKR provided strategic guidance and operational support, enabling Recurly to expand its market presence and product offerings. This partnership highlights Accel-KKR’s role in accelerating growth and creating value in tech firms without the need for full control.

Key market trends in technology private equity

Shift Towards AI and Machine Learning

• Technology private equity firms are increasingly focusing on artificial intelligence (AI) and machine learning (ML) as these sectors continue to disrupt traditional industries. Investors are drawn to companies that leverage AI to improve efficiencies, deliver personalized customer experiences, and drive innovation across various sectors, including healthcare, finance, and retail.

Emphasis on Cybersecurity

• With the growing frequency and sophistication of cyber threats, there is a heightened demand for cybersecurity solutions. Private equity firms are actively investing in companies that offer advanced security technologies, aiming to capitalize on the increasing need for robust digital defenses in an interconnected world.

Rise of Sustainable and ESG-Focused Investments

• Environmental, Social, and Governance (ESG) criteria are becoming more significant in investment decisions. Technology private equity firms are now prioritizing companies that align with sustainable practices, focusing on tech solutions that address environmental challenges, data privacy, and social responsibility.

Increasing Interest in Digital Transformation

• Firms are investing heavily in companies that drive digital transformation for traditional industries. This includes sectors like finance, manufacturing, and logistics, where digital tools and platforms can streamline operations, reduce costs, and open new revenue streams.

Expansion into Emerging Markets

• There is a growing trend of technology private equity firms expanding their focus to include emerging markets such as Southeast Asia, Latin America, and Africa. These regions offer untapped potential, with rising internet penetration, increasing smartphone usage, and a growing middle class creating fertile ground for tech innovation and investment opportunities.

How to get hired by a top tech private equity firm

Technology private equity is a very competitive industry.  

That said, the most common background for new hires at technology private equity firms at the analyst and associate levels tend to include some or all of the following:

• Ivy League or equivalent undergrad experience
• 2-3 years of investment banking or management consulting experience at a top firm
• Track record of excellence in both school and job
• Strong passion for investing and technology, as demonstrated by extracurriculars

Recruitment and career path insights in technology private equity

Knowing what firms look for in candidates and understanding the potential career trajectories can give aspiring professionals a competitive edge. Here’s a concise guide to the recruitment landscape, key skills, and career growth opportunities within Tech PE:

Recruitment Processes

• Tech PE firms often follow a rigorous recruitment process designed to identify candidates with a strong analytical mindset and a passion for technology investments. Typically, this includes an initial application screening, followed by technical interviews focusing on financial modeling, market analysis, and due diligence skills. Expect case studies or modeling tests that evaluate your ability to assess potential investments and propose strategic recommendations. Final stages often involve behavioral interviews to gauge cultural fit and long-term alignment with the firm’s vision.

Key Skills

• Firms prioritize candidates with a blend of technical and financial expertise. Proficiency in financial analysis, valuation techniques, and advanced Excel skills are fundamental. Additionally, a solid understanding of technology trends, digital transformation, and the ability to evaluate tech-driven business models are highly valued. Soft skills such as strategic thinking, strong communication, and the ability to work in fast-paced, high-stakes environments are also critical for success in Tech PE roles.

Career Paths

• Career paths in Tech PE typically begin at the analyst or associate level, with responsibilities centered around deal sourcing, financial modeling, and market research. High performers can expect rapid career progression to roles such as senior associate, vice president, and eventually partner. Advancement is often merit-based, with clear milestones related to deal contributions, leadership in transaction processes, and successful portfolio management.

Career Growth

• To excel and advance within Tech PE, it’s essential to continuously build your knowledge of emerging technologies and deepen your financial acumen. Engaging in professional development through certifications (like CFA or CAIA), attending industry conferences, and expanding your network within the PE community can all contribute to your career growth. Demonstrating a track record of value creation, whether through successful investments or operational improvements in portfolio companies, is key to achieving promotions within the firm.

Next steps

Breaking into technology private equity is all about preparation and persistence. Focus on building your skills in finance and technology, network actively, and stay informed about industry trends. Whether you’re aiming for your first role or looking to advance, continuously learning and adapting will set you apart. If you want to dive deeper into specific areas like SaaS metrics and financial modeling, check out my SaaS course to help you sharpen your skills further, giving you an edge in this competitive field.