The PE buyout opportunity amid tech’s reckoning

The tech industry continues to go through a difficult reset following the investing frenzy that drove unsustainable valuations. As I noted previously, more than 75% of high-growth companies are facing an existential funding crisis that will either end in collapse or M&A at a severely depressed value.

Many Private Equity investors have reacted by pulling back their growth-stage investment activity. But amid this reckoning, a critical opportunity is emerging that PE managers should recognize: venture-backed buyouts or “Venture buyouts”, i.e. buyouts of companies that were previously venture-capital backed

D’Ornano + Co. had the privilege of working on one such deal, serving as strategic advisor to PE firm Bridgepoint in its $650 million acquisition of LumApps, a cloud platform improving employee engagement and productivity. LumApps’ previous venture investors sold their shares to Bridgepoint, which assumes full control and will play a pivotal role in defining and financing future growth s…