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VIDEO: Tech remains a good – and growing – place to be

Technology, software and communications continue to provide attractive investment opportunities, with private equity sponsors enjoying the high growth and defensibility of the sectors.

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Private equity interest in technology, software and communications has been strong and may well continue to be so, but lending into these sectors requires special considerations, according to Antares Capital managing directors Matt Fleming and Sean Sullivan.

When evaluating borrowers, credit managers should look for things like recurring revenues and customer retention, but they should also guard against the technology becoming obsolete. As technology deals with eye-popping figures have generated headlines, credit selection still remains important.