VIDEO: Growth in tech-focused debt capacity is accelerating

Antares’ Matt Fleming on why growth in tech-focused debt capacity is accelerating and how software financing structures could fare if growth slows.

 This article is sponsored by Antares Capital.

In our latest video, PDI’s Chase Collum catches up with Antares Capital managing director Matt Fleming about the state of private debt in the technology sector.

“Technology and software-focused private equity strategies are generating record fundraising while also generating premium returns for their investors,” says Fleming.

“It’s hard to think of a sector other than software that has better defensibility” to labour shortages, supply-chain issues and other inflationary concerns, he says. “This is a labour-light business, they are not reliant on supply chain, and once these products are sold to customer companies, there are very high switching costs, and as such the pricing power that software companies have on their customers is significant if they need to raise pricing.”

Watch the full interview for Fleming’s thoughts on where technology sector deal activity is headed in the coming months.