Growth is an essential part of any company’s success, but often this growth can be dependent on outside help. Private equity firms offer the perfect way for companies, especially in the technology sector, to improve and expand thanks to the investment they provide, so here is a selection of some of the world’s biggest investors…
Goldman Sachs Private Equity Group
Probably one of the most well-known private equity firms in the world, with six distinct capital venture funds, it’s no surprise that Goldman Sachs is deeply interested in technology. Its interests include music streaming site Spotify, which has seen around $550m in investment, and online storage service Dropbox, which it helped to an initial funding round of $250m.
Bain Capital Private Equity
One of the most notorious PE firms around, especially in the US, where its association with former presidential candidate Mitt Romney looms large, Bain Capital has invested in several technology firms over recent years. ERP software provider Viewpoint Construction Software, software company Sungard have both profited from its support in the past, but perhaps its most notable activity was with BMC Software, which was taken private by Bain and Golden Gate Capital for $6.9bn in May 2013.
General Atlantic
Alongside investments in Compuware and restaurant review site Zagat, General Atlantic is also a major investor in Lenovo, which last year was named as the world’s leading PC manufacturer. The firm first got involved with the Chinese company in 2005, when it contributed $100m towards a $350m strategic investment for its acquisition of IBM’s PC business, one of the deals that made it the powerhouse it is today.
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Warburg Pincus
With more than $37bn in investments spread across 120 countries, Warburg Pincus has a wide range of interests in the technology sector. In 2000 it provided telecoms company Avaya with $400m investment as it broke away from parent company Lucent, and has also invested in companies including NeuStar, Telcordia, and VERITAS Software.
Permira
London-based Permira has long been a key investor in the technology sector, alongside its interests in the consumer and financial services sectors. Notable deals include a €12,604m investment in semiconductor manufacturer Freescale and €1,237m in support to software company Genesys.
Carlyle Group
Another investor in Freescale semiconductors (which it bought into in December 2006), the Carlyle Group is widely regarded as one of the most powerful investment organisations in the world. It currently manages over 250 funds across the world over four main sectors, but in the technology sector its interests include LCD glass manufacturer AvanStrate, infrastructure supplier CommScope and broadband company Sagemcom.
Providence Equity Partners
A significant player in the US telecoms and entertainment markets, Providence currently manages a total of $39bn in assets. Past investments include American Cellular (which it co-founded), TDC Telecom, and VoiceStream Wireless, which combined with over interests cover much of the Americas.
Blackstone
Another serious presence in the PE field, Blackstone’s investments include Crocs, Leica and Centre Parcs, managing a total of $86bn. But it also offers serious interest in the technology sector, having acquired leading healthcare IT company Emdeon in November 2011 and The Weather Channel, including all its forecast and broadcasting assets.
Texas Pacific Group (TPG)
TPG has raised over $50bn of investor commitments across 18 funds since its launch, so is no stranger to a big deal. It also holds significant technological interest, having invested in US firm Seagate technology back in 2000 and Telenor in 2001. It is particularly notorious for its part in the 2005 buyout of IT firm Sungard, playing a major part in the $11.3bn deal alongside six other private equity firms.
CVC
Well known for its sports and media investments, due to its ownership of the Formula One business, CVC also has significant interests in the technology sector. This includes a 100% ownership of Hong Kong Broadband Network (which is acquired for HK$5bn in May2012) and a 49% stake in Link Net, which set it back around $275m. In February 2014, CVC also investment $275m into UK business Skrill, making it one of Europe’s leading providers of digital payment solutions.
