Serent Capital marks sixth investment in govtech; buyers scrutinize deals more closely

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Serent Capital marks sixth investment in govtech; buyers scrutinize deals more closely

Good morning dealmakers, thank goodness it’s Friday!

It’s Obey Martin Manayiti here with the newsletter.

To cap off the week, I’m covering, below, several themes I heard folks talking about at the DealMAX conference, including strategies dealmakers are deploying in this tight macroeconomic environment.

But first, let’s take a look at a recent enterprise software deal that caught my eye.

Govtech

Yesterday, Austin-based Serent Capital said it is investing in Bath, Michigan-based BS&A, an ERP software provider to municipalities.

The deal marks Serent’s sixth investment in the govtech market.

PE Hub premium subscribers can learn more details about the deal.

Recurring and predictable

The BS&A deal is part of a wider trend.

Enterprise software is teeming with deals this year. Last month, I did a deep dive into the category, including interviews with partners at PE firms Vista Equity Partners, Thoma Bravo and investment bank William Blair.

“Private equity will always love software,” Pete Dalrymple, managing director and co-head of technology investment banking at William Blair, told me.

“Maybe the valuations are different, but the fundamentals are not. Software is embedded in our daily lives and is ubiquitous across numerous industries and use cases. In good markets and bad, investors appreciate the recurring and predictable nature of these businesses, their capital efficiency, and the additional M&A opportunities that oftentimes come along with owning a platform of scale.”

De-risking

I spent much of this week in Las Vegas at DealMAX, a mid-market focused conference that brought together thousands of participants.

Subscribe to the premium version of the Wire to glean insights from my conversations with Francis Carr or Milton Street Capital, Brian Myeroff of Forvis, and Mike Murray of Peleton Capital Management.

That’s it for me today. PE Hub Europe editor Craig McGlashan will fill in for MK Flynn on Monday’s newsletter.

Have a great weekend and Happy Mother’s Day!

Cheers,

Obey

Read the full wire commentary on PE Hub ...

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