Sep 9, 2022 - Economy & Business

Tech private equity vets raise $3 billion for digitization fund

Illustration of a piggy bank, but the dots on its nose have been replaced with binary code 01.

Illustration: Maura Losch/Axios

BayPine, a Boston-based midmarket buyout firm led by David Roux (ex-Silver Lake) and Anjan Mukherjee (ex-Blackstone), raised $2.2 billion for its debut fund. It also secured $800 million in co-investment commitments.

Why it matters: This is a pair of tech vets aiming at the wide swath of non-tech companies that have yet to fully embrace digitization.

  • Roux tells Axios that he feels like he did when launching Silver Lake 23 years ago, before most of private equity cared about tech, in that peers soon will recognize digitization as the next big investable trend.
  • "I liken it to what happened at the turn of the century when the entire economy went from steam powered to electric," he says. "It took 30 years! Not everyone moves at the same time. Just look at autos, where Tesla has been around for 15 years but many automakers are just now introducing competitive products.

Details: BayPine expects to have a concentrated portfolio of 10 or fewer companies, with three investments already in the portfolio (Penn Foster, Mavis Tire and Pinnacle Dermatology).

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