Tech control Technology has been a go-to industry for the buyout sector for years now, with GPs drawn to investments in business- critical software with sticky customer bases and recurring, subscription-based revenue streams. The roll-out of AI- powered applications across all industries provides additional long-term tailwinds for technology buyouts, with McKinsey forecasting that data center capacity, to keep pace with accelerating AI demand, will have to grow at a compound annual growth rate of 27% between 2023 and 2030. Of the respondents that plan to invest in technology, software and big data analytics are the most popular subsectors, targeted by 92% and 82% of respondents, respectively. Cybersecurity and AI are each being targeted by seven in ten respondents planning to invest in technology. While global trade is expected to have a significant impact on those investing in technology, both artificial intelligence (88%) and/or cybersecurity, privacy, data risks and regulations (86%) are the key macro-trends which are expected to have the greatest impact on investment theses/strategies.
92% of respondents that plan to invest in technology in the next 24 months say they will target the software subsector.
[If Technology selected] Which of the following technology subsectors are you planning to invest in? (Select all that apply)
[If Technology selected] Which macro-trends are having the greatest impact on your investment thesis and/or investment strategy regarding technology businesses? (Select up to three)
SoftwǸrȃ
92%
ArtificiǸl intȃlliȌȃncȃ
BiȌ dǸtǸ ǸnǸlytics
88%
82%
Cybȃrsȃcurity
Cybȃrsȃcurity, privǸcy Ǹnd dǸtǸ risks Ǹnd rȃȌulǸtions
72%
86%
ArtificiǸl IntȃlliȌȃncȃ (AI)
70%
GlobǸl trǸdȃ
58%
Industry-spȃcific tȃch (ȃ.Ȍ. fintȃch, Insurtȃch, hȃǸlthcǸrȃ tȃch)
55%
Anti-trust Ǹnd FDI considȃrǸtions (forȃiȌn, fȃdȃrǸl Ǹnd stǸtȃ, ȃ.Ȍ., ownȃrship disclosurȃs)
E-commȃrcȃ
39%
51%
Robotic ǸutomǸtion
RȃȌulǸtory considȃrǸtions (Ǹsidȃ from thosȃ prȃviously mȃntionȃd)
45%
11%
Sȃmiconductors
9%
FrǸud Ǹnd Ǹbusȃ ȃnforcȃmȃnt (ȃ.Ȍ., FǸlsȃ ClǸims Act)
HǸrdwǸrȃ
5%
5%
BlockchǸin
4%
Gov Tȃch
4%
17
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