Morning all, Craig McGlashan here with the Europe Wire from the London newsroom.
The rise of generative AI might offer many opportunities for private equity investors, but as we’ve written plenty on PE Hub, the uncertainty over where the tech will be most impactful is affecting dealmaking and valuations in other ways.
This morning, André François-Poncet of Partech explains how one winner in the new world of AI is a sector that has so far proven resilient to its impact: highly specialized vertical software.
Staying with tech, we take a look at the latest carve-out deal, where Aurelius has agreed to acquire DCC Technology’s info tech business Exertis in the UK and Ireland.
Playing it safe
Highly specialized software has emerged as a “safe harbor” in Europe amid the rising tide of AI disruption, according to André François-Poncet, partner at Partech, as investors flock to assets that promise “safety and security.” These software platforms stand out as resilient for a couple of key reasons, he told PE Hub’s Irien Joseph.
Read the premium version of the Wire to learn how AI-resilient tech companies' valuations compare with the wider sector.
Check out the full article to find out why European investors are also seeing competition for these assets from the US.
Tech distribution
Sticking with tech, Aurelius has agreed to acquire DCC Technology’s info tech business Exertis in the UK and Ireland in the latest carve-out in European private equity.
Find out the division's revenues in the premium version of the Wire.
There have been more and more opportunities for carve-outs, a topic we covered in depth in June.
That’s all from me today. Michael Schoeck is on US duty later today and I’ll be back again tomorrow from Europe.
Cheers,
Craig
Read the full Wire commentary on PE Hub ...
