Key Takeaways
- • Apax, Clearlake, EQT, Francisco Partners, Hg, Permira, Thoma Bravo and Vista told PEI Private Equity that software valuations are creating buying opportunities as AI reshapes the sector.
- • Managers are focusing on defensible moats, AI-native companies and the impact of "vibe coding" on software businesses.
- • The discussion frames AI as the dominant theme in software investing for private equity firms active in the technology, media and telecom (TMT) sector.
Summary
Leading private equity firms Apax, Clearlake, EQT, Francisco Partners, Hg, Permira, Thoma Bravo and Vista discussed their software investment strategies with PEI Private Equity, according to a TMT sector spotlight published by PEI Private Equity and written by Craig McGlashan. The piece argues that buying opportunities are emerging in the sector even as artificial intelligence dominates investment activity.
The managers focused on several themes, including the defensibility of software businesses, the emergence of AI-native companies, and the implications of vibe coding, a term for software development increasingly assisted by AI tools. The conversation centred on how sponsors assess whether incumbent software companies can maintain competitive advantages as AI capabilities advance.
The article is based on the publisher's interviews with these eight firms. Source material available for this summary was limited to the article's headline, standfirst and key themes, so specific deal values, fund sizes and performance figures discussed in the full piece are not reflected here.
The managers focused on several themes, including the defensibility of software businesses, the emergence of AI-native companies, and the implications of vibe coding, a term for software development increasingly assisted by AI tools. The conversation centred on how sponsors assess whether incumbent software companies can maintain competitive advantages as AI capabilities advance.
The article is based on the publisher's interviews with these eight firms. Source material available for this summary was limited to the article's headline, standfirst and key themes, so specific deal values, fund sizes and performance figures discussed in the full piece are not reflected here.
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