September by D’Ornano + Co.: why growth is paramount in Tech buyouts, a deep-dive into Foundation Models and the economic opportunity of GenAI for the PE industry

This is our monthly newsletter dedicated to Tech x Investments.

Dear readers,

I hope you have had an excellent start to the year's second half. Although I am a profound optimist regarding Tech, as mentioned in last month's edition of this newsletter, the current environment is highly challenging across the spectrum of the Private Markets, and high-growth and disruptive assets are not immune to this.

Macroeconomic indicators point to a high probability of a recession in the next 18 months, contributing to the ongoing uncertainty we are facing in the Private Markets. Also, the platform shift brought by GenAI takes on greater significance each day, and the era in which it remained a field solely invested by VCs (and this was just a couple of months ago) is gone. The magnitude of start-up and incumbent revenues in the area and the extension of use cases have reinforced, if need be, our conviction on the magnitude of the opportunity.

GenAI is having a massive impact across all asset classes, and this is more an opportunity than a problem, but it is causin…