Tech private equity is "frozen"
Summary
Tech buyout deals worldwide have slowed down sharply in April and May 2026, dropping from billions of dollars each month to much lower totals. This slowdown is connected to uncertainties caused by new AI technologies and tighter credit markets, making it hard for buyers and sellers to agree on prices.Key Facts
- Global tech buyout values were $9.3 billion in April and May 2026 combined, much less than $52.6 billion in March 2026 alone.
- From September 2025 to February 2026, the monthly average for global tech buyouts was $43.4 billion.
- U.S. tech buyouts also dropped from a $25 billion monthly average (ending March 2026) to $4.4 billion total in April and May 2026.
- The arrival of AI tools like Claude and Codex created uncertainty in buying decisions.
- Private credit markets have less money available, making deals harder to finance.
- Sellers either cannot find buyers or receive offers that are much lower than expected.
- Some private equity groups are trying alternative approaches to maintain valuations, like raising new funds or creating convertible preferred shares.
- The market is waiting for more data in coming quarters to better understand the impact of AI and inflation on tech investments.
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