The rise of private equity in tech
Private equity firms dabbling in tech isn’t new. But in 2024 and 2025, they’ve gone all-in. Billion-dollar acquisitions and strategic megadeals means that private equity (PE) players are now more involved in the operational scale and integration of the industry.
In fact, tech now accounts for nearly a quarter of total PE deal value. And with AI-fuelled time and cost reductions and recurring revenue models taking the lead, that percentage is only rising.
2025 has already seen some standout transactions. Centerbridge Partners acquired financial software provider MeridianLink for around $2 billion. Thoma Bravo scooped up restaurant tech firm Olo for a similar sum. And Blackstone completed its largest-ever tech deal with a $3.5 billion investment in Japan’s Techno Holdings, an engineering and IT services giant.
The growth is part of a bigger trend in mega-transactions. In the first half of 2025, 27% of all global PE deals surpassed $10 billion, up from just 11% the year prior. And total deal value across all sectors jumped 19%, reaching $386.42 billion in just six months.
Why PE is so attracted to tech right now
Private equity’s playbook has changed and today’s investors are focused on sectors that can grow fast and get more efficient as they scale… and tech ticks both boxes.
1. SaaS and recurring revenue models
Predictability and scalability have become non-negotiables and PE firms are favoring enterprise software and B2B platforms, where recurring revenue and long customer lifecycles create confidence in both cash flow and exit opportunities. In 2024 alone, software deals totaled $134.8 billion, accounting for 23% of overall PE transaction value, up from 21% the previous year.
2. Healthtech and cybersecurity
Sectors like cybersecurity and digital health are also drawing more attention. Healthtech investments rose 50% year-over-year, hitting $15.6 billion in 2024. With growing regulatory pressures and digital-first service delivery, these spaces are considered to be both recession-resilient and innovation-led. PE firms have also doubled down on cybersecurity platforms which are seen as essential to the infrastructure of multiple industries.
3. AI-enhanced due diligence and portfolio ops
It’s not just the portfolio companies that are using AI, the investors are too. AI is cutting the time and cost involved in due diligence and portfolio monitoring, and some firms are reporting up to 70% reductions in document processing costs, which is improving the speed and precision of their deal execution and performance tracking.
Citrix Systems as a blueprint for the future
The $16.5 billion acquisition of Citrix Systems by Vista Equity and Elliott Associates in 2022 is still a defining moment for tech-focused buyouts. This landmark deal merged Citrix with Vista-owned TIBCO Software to form a combined entity with over 400,000 customers and $4 billion in revenue.
But beyond the numbers, the deal was a new model that merged scale, vision, and digital infrastructure under private ownership. It showed how PE firms can acquire large tech assets and also integrate them strategically to create category leaders.
Make bigger bets and smarter moves
PE's growing influence in tech is about transforming the very structure of the software ecosystem, as well as chasing returns. With capital flooding into AI, healthtech, and cybersecurity – and deals being sourced and managed more efficiently – PE is reshaping what growth looks like for the tech giants of the future.
Expect fewer, bigger, and smarter transactions, with a focus on helping companies work more efficiently and stay on track with the right strategy.
If you’re scaling a PE-backed tech company or thinking about joining one, the bar for finance, operations, and growth talent has never been higher. Get in touch with Ollie at [email protected] if you are looking to grow your finance function within the VC/PE Technology space.
