Software private equity firms buy stakes in software companies, often taking full control, and aim to sell them later at a higher value. A handful of firms hold most of the money in this part of the market.
Thoma Bravo, Vista Equity Partners, Silver Lake, Hg and Francisco Partners are the largest by assets or capital raised. Each one reported new funds or large deals between 2025 and 2026.
The year has been hard for software buyouts. Reuters reported in August 2026 that concerns about AI had kept private equity firms out of most large software deals, because those concerns make it harder to judge what traditional software companies will be worth.
The largest software private equity firms in 2026
The table below uses each firm’s latest public figures. Francisco Partners reports total capital raised rather than assets under management, so its number is not directly comparable.
| Firm | Headquarters | Assets or capital | Investment focus | Recent deal or fund |
|---|---|---|---|---|
| Thoma Bravo | Chicago | About $170B AUM (June 2026) | Software only | Dayforce, about $12.3B |
| Hg | London | More than $110B AUM (July 2026) | Software and services | OneStream, about $6.4B |
| Silver Lake | Menlo Park | About $104B AUM and committed capital | Technology | Electronic Arts, about $55B |
| Vista Equity Partners | Austin | $103B AUM (June 2026) | Enterprise software only | Quantios, agreed purchase from Hg |
| Francisco Partners | San Francisco | More than $75B raised since 1999 | Technology | $21B across two funds |
Thoma Bravo leads by a wide margin. Its reported assets are about $60 billion higher than those of the next three firms, which sit close together between $103 billion and $110 billion.
Software-only private equity firms
Two of the largest firms invest only in software. Their deal histories run to hundreds of transactions each.
Thoma Bravo
Thoma Bravo calls itself the largest software-focused investment firm. As of June 30, 2026, it reported about $170 billion in assets, about 80 current portfolio companies and about 600 total transactions.
The aggregate enterprise value of those transactions is about $325 billion, according to the firm. In 2025, Thoma Bravo closed $34.4 billion across three buyout funds, Crain Currency reported.
Its recent deals include an agreement to buy payroll software company Dayforce in a deal valued at about $12.3 billion, per Reuters. In April 2025, it agreed to buy Jeppesen, ForeFlight and other digital aviation assets from Boeing for $10.55 billion.
Thoma Bravo describes its method as buy-and-build. The firm buys a platform company and then adds smaller companies to it. For example, it merged two acquisitions under the Casepoint name.
Vista Equity Partners
Robert F. Smith founded Vista Equity Partners in 2000. The Austin-based firm invests only in enterprise software, through private equity and private credit.
Vista reported $103 billion in assets and more than 85 portfolio companies as of June 30, 2026. It counts more than 690 enterprise software equity transactions since its founding.
Its flagship Fund VIII closed at $17.9 billion in 2024. In 2026, Vista opened an office in Abu Dhabi and agreed to buy financial software company Quantios from Hg.
Vista also backs AI companies. It took part in Together AI’s $800 million Series C, a round that sits among the deals tracked in this list of the most heavily funded AI startups.
Technology investors with large software portfolios
Silver Lake and Francisco Partners invest across technology, not only software. Software still makes up a large share of their deals.
Silver Lake
Silver Lake was founded in 1999 and is based in Menlo Park, California. It reported about $104 billion in combined assets and committed capital in February 2026.
The firm says its portfolio companies generate about $252 billion in yearly revenue and employ about 433,000 people. Its seventh flagship fund closed at $20.5 billion in May 2024.
Silver Lake took Qualtrics private in 2023 with CPP Investments in a $12.5 billion deal. It also led the roughly $55 billion take-private of Electronic Arts with Saudi Arabia’s Public Investment Fund and Affinity Partners.
In August 2026, Reuters reported that Silver Lake was in talks to buy Workday. Workday’s shares rose about 18% on the report, giving the HR software company a market value of about $51.1 billion. The sources said a deal was not guaranteed.
Francisco Partners
Francisco Partners is based in San Francisco and has invested in more than 500 technology companies since 1999. It does not limit itself to pure software, but software is a core part of its portfolio.
On July 24, 2026, the firm closed $21 billion across Francisco Partners VIII and Agility IV, its middle-market fund. The targets had been $14 billion and $3.5 billion.
That was the largest fundraise in the firm’s history. It brought total capital raised since inception to more than $75 billion.
Software private equity firms in Europe
Most of the largest software private equity firms are American. Hg is the main exception.
Hg
Hg is based in London and focuses on software and services businesses. In July 2026, it reported more than $110 billion in assets and more than 400 employees.
In January 2026, Hg bought financial software maker OneStream for about $6.4 billion, according to Techzine. Hg also sells companies to other software investors, as its agreed 2026 sale of Quantios to Vista shows.
How software private equity firms make money
A private equity firm raises a fund from pension plans, endowments, insurers and sovereign wealth funds. These investors are called limited partners.
The firm uses the fund, plus borrowed money, to buy control of companies. It then tries to grow profits and sell each company within several years.
Software fits this model because most software is sold by subscription. Revenue repeats each year, which helps the owner plan debt payments.
Many deals are take-privates. The firm buys a listed company and removes it from the stock exchange, as Thoma Bravo did with Dayforce and Silver Lake did with Qualtrics.
Firms also buy software that customers rely on daily. Jefferies analysts pointed to Workday’s 97% retention rate as a reason a buyer might see it as protected from AI disruption.
Tech private equity fundraising in 2026
Fundraising for technology-focused private equity has fallen since 2022. PitchBook data, cited by Angel Investors Network, shows the decline in the chart below.
Tech private equity funds raised $146 billion at the 2022 peak. The total fell to $97 billion across 100 funds in 2025.
In the first half of 2026, 38 tech-focused funds raised $26.24 billion. Francisco Partners closed its $21 billion in July, after that period ended.
Venture capital moved the other way. AI startups took 71% of global venture funding in the first nine months of 2026, according to these AI funding statistics for 2026.
Much of that money went to model developers. A separate breakdown of generative AI deal totals and trends covers where it landed.
What could change for software buyouts
The Workday talks are the main test for the rest of 2026. A completed deal would rank among the largest software buyouts ever, per Reuters.
The pace of AI adoption is the other factor. Buyers now check each target for the risk that AI tools replace its product.
Fresh capital is in place. Francisco Partners and Thoma Bravo both closed record funds in the past two years, so they have money ready to spend.
FAQ
What are software private equity firms?
Software private equity firms are investment firms that buy stakes in software companies, often full control. They use investor funds and debt, aim to grow profits and sell each company within several years.
Which is the largest software private equity firm?
Thoma Bravo is the largest. It reported about $170 billion in assets under management as of June 30, 2026, with about 80 current portfolio companies.
How is software private equity different from venture capital?
Private equity firms usually buy control of mature, profitable companies, often with debt. Venture capital firms buy minority stakes in young startups and rarely use debt to fund the purchase.
Do software private equity firms invest in AI?
Some do. Vista Equity Partners joined Together AI’s $800 million Series C, and Silver Lake invested in Waymo in 2026. Most buyout money still goes to established software businesses.
How do software private equity firms exit investments?
They sell the company to another buyer, sell it to a second private equity firm, or list it on a stock exchange through an IPO. Hg’s sale of Quantios to Vista is one recent example.
