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Lagging software stocks could be private equity's next target.

The big picture: 90% of the names on a PitchBook list of take-private candidates are software stocks.

State of play: It's been a brutal stretch for the category.

The S&P Software & Services Index is down more than 25% in the last six months.

Bumble, Dropbox and First Advantage were listed with a 10% or greater chance of being taken private, per PitchBook.

💭 Chris Metinko's thought bubble: Targets could include businesses with deeply embedded products and defensible data advantages in vertical markets.

Companies with proprietary data and algorithms, like business analytics firms, could also present good opportunities in a down market.

Zoom out: Take-privates are happening at a consistent clip so far this year, per PitchBook's quarterly report on U.S. private equity.

Take-private deal value for the quarter is up 64.8% year-over-year, totaling about $60.8 billion.

There have been 10 take-privates through March, up from 6 in the first quarter of 2025.

Software companies make prime take-private targets

It's a small salve on what's been a brutal business for the category.

Illustration of a $100 US bill with a software UI frame and a large black computer cursor pointing at the bill.

Lagging software stocks could be private equity&#x27;s next target.The big picture: 90% of the names on a <a class="gtmContentClick" data-vars-link-text="PitchBook list" data-vars-click-url="https://pitchbook.brightspotcdn.com/48/12/396cf87645529022992d713bf370/q1-2026-us-pe-breakdown.pdf" data-vars-content-id="aa9fb4e7-7693-4632-8072-b1c1852ea921" data-vars-headline="Software companies make prime take-private targets" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://pitchbook.brightspotcdn.com/48/12/396cf87645529022992d713bf370/q1-2026-us-pe-breakdown.pdf" target="_blank">PitchBook list</a> of take-private candidates are software stocks.

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Software companies make prime take-private targets

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