Permira differentiates in the crowded tech private equity space by targeting category-leading software companies. Their strategy focuses on doubling down on product investment to accelerate growth, rather than milking the business for short-term margin expansion.

Instead of selling software to traditional industries, a more defensible approach is to build vertically integrated companies. This involves acquiring or starting a business in a non-sexy industry (e.g., a law firm, hospital) and rebuilding its entire operational stack with AI at its core, something a pure software vendor cannot do.

GC is shifting from a traditional venture fund to a company that incubates and holds "transformation companies" like a hospital system and an AI consultancy indefinitely. These businesses are designed for long-term value creation, not quick exits, and also serve its portfolio founders.

Despite owning multiple related businesses (e.g., in video), Bending Spoons deliberately avoids forcing synergies like cross-selling or bundling. They believe the value lost in organizational agility, ownership, and speed far outweighs the small potential revenue gains. This 'Procter & Gamble for tech' model allows each brand to operate with startup-like autonomy, preserving its unique value.

Private Equity value creation has evolved. In the 2000s, it was driven by leverage; in the 2010s, by digital transformation. Today, AI serves as the new foundational "operating system" for growth, embedding intelligence into every process, contract, and customer touchpoint to drive returns.

The rapid evolution of AI means traditional private equity M&A timelines are too slow. PE firms and their portfolio companies must now behave more like venture capitalists, acquiring earlier-stage, riskier AI companies to secure necessary technology before it becomes unaffordable or obsolete.

Instead of starting from scratch, a common strategy for successful founders is to use their exit capital to acquire existing, profitable businesses. By sticking to industries they already know, they can apply their specific expertise to grow established companies, mimicking Warren Buffett's investment philosophy.

Unlike private equity's 3-5 year model focused on debt and cost-cutting, GC's AI roll-ups are structured like venture-backed tech companies. The 7-10 year goal is to build a public "compounder" (like Danaher) that uses AI for operational improvements and reinvests cash flow into more acquisitions.

Recent acquisitions of slow-growth public SaaS companies are not just value grabs but turnaround plays. Acquirers believe these companies' distribution can be revitalized by injecting AI-native products, creating a path back to high growth and higher multiples.