Top 5 Tech Trends in Private Equity in 2025

In 2025, technology continues to evolve at an unprecedented pace, reshaping industries and redefining how investors approach value creation. CPTO Fredric Rougemont shares the strategic shifts driving the industry below. 

The Digital Transformation Imperative

Digital transformation enhances operational resilience, unlocks new revenue streams, and ensures long-term scalability. Investors who identify and support companies that leverage emerging technologies effectively will gain a significant competitive edge.

Key Tech Trends Shaping Private Equity in 2025

1. AI-Driven Innovation Beyond Automation

AI is a major force in automation and operational efficiency. However, its real potential lies in predictive analytics, customer personalisation, and AI-powered decision-making. Investors should look beyond basic automation and assess how their portfolio can integrate AI to create differentiated products and services. 

Read more about the evolution of AI and Agentic AI’s disruption of e-commerce in our recent article here. 

2. Cloud-First and SaaS Migrations at Scale

Companies are rapidly shifting from legacy infrastructure to multi-cloud and hybrid-cloud strategies. This shift enables more flexible operations and can significantly enhance growth potential. There is a strong demand for solutions that support cloud readiness and facilitate smooth transitions to SaaS models.

3. Cybersecurity as a Value Driver, Not Just a Cost Centre

The cost of cyber breaches is projected to exceed £10.5 trillion annually by 2025, according to recent studies. PE-backed firms can no longer treat cybersecurity as a compliance measure. It is now a critical value creation lever. Investors should prioritise companies with robust zero-trust security architectures, AI-driven threat detection, and proactive risk management.

4. Digital Infrastructure and Data Monetisation

Over £100 billion has been invested in data centres in the past three years. Private equity is increasingly targeting digital infrastructure. Beyond storage and computing power, data itself is emerging as a monetisable asset. Businesses that harness advanced analytics and machine learning for data-driven decision-making will be well-positioned for long-term success.

5. Talent, Leadership, and Tech Hiring Trends

Private equity firms are building internal talent pipelines and hiring tech-savvy leaders with expertise in digital transformation. The demand for CTOs, Chief Data Officers, and cybersecurity specialists is at an all-time high. Firms are actively investing in talent development initiatives to stay ahead.

Strategic Insights for Investors

To capitalise on these trends, investors must adopt a proactive and tech-focused approach:

• Look for Continuous Innovation. Companies with strong R&D roadmaps and iterative product development cycles tend to outperform their peers in the long run.

• Prioritise Scalable Business Models. Cloud-native, subscription-based, and data-driven companies are better positioned for sustainable growth.

• Embrace Data-Driven Decision-Making. Leveraging predictive analytics and real-time data can help investors identify trends and mitigate risks.

• Strengthen Cyber Resilience. Companies with robust cybersecurity frameworks are not only better protected but also more attractive to acquirers and partners.

Conclusion: Investing in the Future of Tech-Enabled Growth

The tech trends shaping private equity in 2025 will redefine how businesses operate and how value is created. For investors, the challenge and the opportunity lie in identifying companies that are not only adapting to digital transformation but leading it.

By focusing on key areas like AI integration, cloud readiness, cybersecurity, and digital infrastructure, investors can position themselves to capture the next wave of innovation and maximise returns.

The opportunities in 2025 are immense for those who embrace a digital-first approach. Let’s seize them together.