REPOST: Why PE firms targeting tech buyouts could face competition from SPACs

Why PE firms targeting tech buyouts could face competition from SPACs By Leah Hodgson March 10, 2021

Private equity has become a well-established path to liquidity for VC-backed startups, but a rebound in IPO activity and the rise of SPACs could mean more competition for deals.

PE buyouts have gone from representing 9.7% of global VC exits in 2010 to 16.4% in 2020, according to PitchBook data, making them the fastest-growing exit type compared with strategic acquisitions and IPOs. These deals—many of which are tech-focused—have continued into this year. Notable examples include Platinum Equity-backed Cision‘s $450 million purchase of Brandwatch from investors including Highland Europe and Nauta Capital, and Vista Equity Partners‘ reported $1.1 billion deal for Gainsight, backed by Battery Ventures and Lightspeed.

Read More: https://pitchbook.com/news/articles/pe-firms-tech-buyouts-competition-from-spacs

Author: JDM

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