Kate Withers Discusses Rising PE Activity in the Tech Sector in The Wall Street Journal

The IPO market in 2024 outpaced the previous year but remains in a recovery phase, with activity reported at below-normal levels, according to the firm’s U.S. Private Equity Market Recap – October 2024. Citing this finding, an article from The Wall Street Journal discussed how disrupted exit avenues are impacting investors, who are placing increasing pressure on venture capital firms for returns. To generate liquidity, many venture capital firms and mature tech startups are selling to private equity.

Private equity partner Kate Withers offered industry insight, saying that “PE firms are particularly drawn to software companies with subscription business models and stable, recurring revenues, although they will look for growth opportunities in other sectors such as AI-supportive data infrastructure deals too.”