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.