Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. and other leading private equity firms invest predominantly in mid capitalization technology firms, technology firms with 2 to 10 billion USDs in market capitalization or private market value. Mega capitalization technology firms with market capitalization of above 20 billion USD are too big even for the biggest funds of Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. and other leading technology firms, it seems.
In 2008 we had an almost 80 billion USDs private equity leveraged buyout deal. Those boom times have not returned fully. The biggest leveraged buyouts now are to the tune of 40 billion USDs.
Technology companies can decline in value quickly, that is why Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. are wary of investing too large amounts in technology companies with market capitalization above 50 billion USD. When they do a mega deal or above 20 billion USDs, the leading private equity firms do it in consortium with other leading private equity firms to share the risk.
Sooner or later, there will be a 70 billion USDs or higher technology leveraged buyout, according to Wolfteam Ltd.'s projections and estimates.
Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. are still cautious because they manage foundations, endowments and pension funds' money.
However, there is tremendous value to the tune of tens or even hundreds of billions of USDs of value created in the technology space, related in many cases to artificial intelligence, AI occurring every year since 2014. Such value creation opportunities could prove too tempting for Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. other leading technology firms in the long run.
No comments:
Post a Comment