Exactly. Tech-oriented shareholders are longing for growth, so PE firms often acquire tech companies with a large customer base but no stellar growth story. Bes

Exactly. Tech-oriented shareholders are longing for growth, so PE firms often acquire tech companies with a large customer base but no stellar growth story. Besides cutting costs, they also charge customers more. A classic PE game is to declare a widespread, but no longer innovative software product "end of life" just to charge more for "extended support" contracts. Customers often have said product deeply entrenched in their daily workflows and would inccur high customizing costs if they switch to a competitor. In the end, they are better off paying the support premium. From a funding perspective, PE firms also have an advantage compared to stock exchanges: because their assets are no longer traded daily, the volatility of these assets decreases. The asset value is maybe determined once a year for balance sheet purposes. This means that pension funds and other regulated investors can invest more in the PE sector than in stocks, because technically they are buying "low volatility assets".