Investments in cybersecurity firms have remained a top priority for many private equity firms, especially those specializing in technology deals.
Since 2017, the top 10 private equity firms in the cybersecurity space have completed 146 deals with a median deal size of over $541 million, according to PitchBook data.
The largest cybersecurity deals this year include the $14 billion take-private deal for security software company McAfee by an investor group led by Advent Internationaland Permira; Liberty Strategic Capital's $525 million deal for Zimperium, a provider of mobile threat defense; and a $350 million deal for networking solutions provider Tripwire by IT management software developer HelpSystems via a long list of private equity financial sponsors including Charlesbank Capital Partners and Harvest Partners.
Since 2017, tech-focused Thoma Bravo has completed the most deals, followed by TA Associates and Insight Partners. Thoma Bravo is currently collecting commitments for its 15th flagship fund, which has a $22 billion target.
Vista Equity Partners, another firm on the top 10 list, also has an open mega-fund—defined as a vehicle of $5 billion or more—targeting between $20 billion and $24 billion for its eighth buyout fund. Further, TPG is targeting $15 billion for its ninth namesake fund.
Here are the most active investors by deal count since the start of 2017.
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This article originally appeared on PitchBook News
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The article highlights the sustained emphasis on investments in cybersecurity firms by private equity entities, particularly those focused on technology deals. The data, sourced from PitchBook, reveals compelling insights into the activities of the top 10 private equity firms in the cybersecurity sector since 2017.
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Deal Volume and Size:
- Private equity firms have completed 146 deals in the cybersecurity space since 2017.
- The median deal size is noteworthy, exceeding $541 million.
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Key Deals in 2023:
- A standout transaction is the $14 billion take-private deal for McAfee led by Advent International and Permira.
- Liberty Strategic Capital secured a $525 million deal for Zimperium, a mobile threat defense provider.
- IT management software developer HelpSystems orchestrated a $350 million deal for networking solutions provider Tripwire.
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Top-performing Firms:
- Thoma Bravo has emerged as a leader, completing the most deals since 2017. They are currently raising commitments for their 15th flagship fund with a $22 billion target.
- Other prominent firms include TA Associates and Insight Partners.
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Open Mega-Funds:
- Vista Equity Partners and TPG are actively pursuing mega-funds. Vista aims for a fund between $20 billion and $24 billion, while TPG targets $15 billion for its ninth namesake fund.
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Industry Dynamics:
- The article underscores the ongoing significance of cybersecurity investments, showcasing the commitment of private equity players to this sector.
- Thoma Bravo, TA Associates, and Insight Partners stand out as key contributors to deal volume.
In essence, the cybersecurity investment landscape is robust, characterized by substantial deal sizes, key transactions, and the prominence of specific private equity firms. The commitment of major players, such as Thoma Bravo, Vista Equity Partners, and TPG, reflects a sustained interest in this dynamic and critical sector of technology investments.
