Our List of 10 Software Private Equity Firms Investing to Watch

For top private equity firms, there’s a lot to like about SaaS. And it typically boils down to a few common elements that successful SaaS companies do particularly well:

High-quality SaaS companies feature predictable, recurring revenues, solid unit economics, and high gross margin and gross profit rates. While these are just a handful of reasons why PEs love SaaS companies, it’s no wonder that top private equity firms continue to focus on SaaS acquisitions.

A well-defined investment strategy is crucial for private equity firms focusing on software and SaaS companies, as it helps streamline and support their growth.

Here is a select list of the most active PE investors in the SaaS and software industry over the past year (data taken from the SEG 2024 Annual SaaS Report).

Main Capital Partners

Founded in 2003, Main Capital Partners has been among the most active private equity firms in the software space, making 10 SaaS deals in 2023 alone.

Based in the Netherlands and with additional offices in Antwerp, Boston, Dusseldorf, and Stockholm, the firm maintains a diverse international portfolio of companies across the consumer products, consumer services, SaaS, information technology, healthcare, and ad tech sectors.

Main Capital has made 215 total investments since its founding. Its current assets under management (AUM) are $2.37B, and its active portfolio includes 47 firms with a median valuation of $10.25M. The firm currently employs 31 professionals. Recent software acquisitions include Sensire, a developer of cold chain monitoring technologies for the food and healthcare industries; Cloud Coach, a provider of business and productivity software; and Xential, a document creation SaaS firm.

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Francisco Partners

Founded in 1999 and based in San Francisco’s tech hub, Francisco Partners provides flexible capital and partnerships to “growth-aspiring technology companies.” Considered one of the top private equity firms, Francisco Partners has made 457 total investments since its inception and currently has $45B in AUM across 80 firms with a median valuation of $220M.

The firm employs 93 professionals. Among its seven SaaS acquisitions over the past year, its portfolio includes business productivity software providers Sumo Logic and New Relic, along with GreenSlate, an accounting and payroll software developer.

Thoma Bravo

According to DealRoom, Thoma Bravo is the eighth-largest global private equity firm. One of the oldest firms on this list, the Chicago-based company with 122 professionals, has made 522 investments since its founding in 1980. The company focuses primarily on applications, cybersecurity, financial technology, healthcare information technology,  infrastructure sectors, and enterprise software companies.

Thoma Bravo maintains an active portfolio of 76 firms, with $134B in AUM and a $435M median valuation. Among its six SaaS buys over the past year, the firm made several strategic investments in healthcare, including the Netherlands-based medical data analytics firm Logex Group, BlueSight, an inventory management system developer for hospitals, and NextGen Healthcare.

Accel-KKR

Accel-KKR (AKKR) is a top 10 private equity investment firm based in Menlo Park, California. The firm targets mid-market software and tech-enabled companies.

AKKR has made 420 total investments over time and currently has $19.11B in AUM across an active portfolio of 66 firms with a median valuation of $73.47M. AKKR invested in five software companies in 2023, including Facture, a developer of tax compliance software; Loftware, a maker of cloud-based enterprise labeling and artwork management software; and enterprise resource planning (ERP) solution provider Symfonia.

Vista Equity Partners

Also founded in 2000, this Austin, Texas-based firm oversees a diverse portfolio that includes investments in software, agriculture, construction, education, energy, financial services, government, healthcare, hospitality, insurance, legal, marketing, media, entertainment, real estate, retail, security, telecom, transportation, and technology-enabled business sectors.

Vista is a significant player in SaaS, having made five investments in 2023 in companies like Duck Creek Technologies, a core systems provider for the insurance industry, subscription management analytics firm TRG Screen, and integrated payments platform EngageSmart. Vista has made 609 investments since inception, and its active portfolio includes 101 firms with $100B in AUM and a $374.39M median valuation. The firm employs 246 professionals.

GTCR

Founded in 1980, GTCR is a private equity firm in Chicago, Illinois. The firm seeks to invest in the financial services, healthcare, technology, media, telecommunications, business, and consumer services sectors. It employs 99 professionals to manage an active portfolio of 44 companies with an AUM of $35B and a median valuation of $125M.

GTCR utilizes advanced portfolio monitoring tools to collect, manage, and report on individual investments as part of its investment management process. In 2023, GTCR made four software deals, including investments in payment processor WorldPay, supply chain risk management software provider Once For All, and specialized administration system vendor Foundation Source. The firm has made 878 total investments since inception.

READ MORE: Selling Your SaaS Company? How to Think Like Software Investors & Buyers

HG Capital

HG Capital is a London-based private equity firm that was founded in 1990 and employs 186 professionals. The firm targets investments in financial services, healthcare, information technology, software, and SaaS industries in Europe and North America.

HG Capital strongly emphasizes investor relations, utilizing technology-driven solutions to manage relationships with investors, facilitate fundraising, and enhance reporting to external stakeholders.

This top private equity firm has made 1,073 total investments since inception, and its current $65B AUM active portfolio consists of 52 companies with a $66.11M median valuation. Among its most recent software acquisitions are GTreasury, an operator of integrated SaaS digital treasury and risk management solutions; Nomadia, a developer of real-time monitoring software; and ERP solution provider JTL Software.

STG Partners

STG Partners is a private equity firm based in Menlo Park, California. The firm seeks to invest in the software, service, data, and analytical sectors. With 213 total lifetime investments, STG currently holds $10B in AUM across an active portfolio of 29 companies with a $103.25M median valuation.

STG’s four software transactions in the past year have included acquisitions of Alveo, a cloud-based data management service, Wrike, a collaborative work management platform developer, and digital media platform provider Avid Technology. The firm employs 43 professionals.

TPG Capital

TPG is a private equity firm based in New York that invests in companies operating in the consumer, healthcare, business services, internet, digital media & communications, software, and enterprise technology sectors.

Founded in 1992, the firm also makes impact and real estate investments. It made four software acquisitions in 2023, including business productivity software provider Thompson Reuters Elite, network management software developer Forcepoint, software analytics solutions provider New Relic, and Nextech, an electronic medical record software purveyor. TPG currently has an active portfolio of 270 firms with a median valuation of $250M and holds $222B in AUM. TPG has made 1,831 total investments since its founding and employs 183 professionals.

Battery Ventures

Battery Ventures was founded in 1983 and is headquartered in Boston, Massachusetts. The firm invests in technology companies primarily in the application software, infrastructure software, consumer, industrial technology, and life science tools sectors.

The firm closed three SaaS acquisitions in 2023, including business productivity software maker Avrios, fleet management software developer Vimcar, and GrammaTech, a provider of network management software. Battery holds $16.84Bin AUM across an active portfolio of 189 companies with a $70.72M median valuation. The firm employs 81 professionals and has made 1,401 investments since its start.

Cultivating Relationships with Top Private Equity Firms is Key to a Successful Sale

Are you considering a majority investment or strategic sale?

As a SaaS founder or executive, exercising caution when disclosing details about your company is essential, as oversharing can potentially hinder your chances of a successful sale. Many PE firms are known for their astuteness in uncovering information, some of which may not be advantageous for you to reveal, especially in the early stages of negotiation.

If you have received an inbound offer or are already in discussions with a top private equity firm, seeking guidance from an experienced sell-side advisor is prudent.