Private Equity Keeps Buying Tech Companies — and They’re Not Selling

Private Equity Keeps Buying Tech Companies — and They’re Not Selling

Private equity acquired 184 tech companies in North America last quarter and exited only 15.

Private equity firms have been buying-up technology companies at a feverish pace — but not selling them, according to Value Add analysis of Mergermarket and Dealogic data. 

Between Q3 2020 and Q3 2023, PE-backed technology buyouts in North America increased 152% while PE-backed technology exits decreased 81%, signaling that buyout firms are acquiring and holding tech companies faster than they’re exiting them. The peak-to-trough decline in PE-backed technology exits has actually fallen 90% since the market-high of Q2 2021.  Buyouts and exits in this case are defined by private market transactions greater than $50 million. 

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