The technology, media and telecoms (TMT) sector is a global market defined by innovation, change and growth. Over the last economic cycle, the importance of digital technology to enterprises and consumers globally has increased at a remarkable pace. Strong secular growth will continue as enterprises look to leverage technology to increase productivity, enhance decision-making, and enable more effective collaboration across enterprises and stakeholders. This trend is particularly apparent in verticals such as the public sector and financial institutions, where technology penetration should continue to increase, driving a shift from manual to automated and digital workflows. Cloud delivery models, such as Software as a Service (SaaS), continue to disrupt traditional software business models. This creates dynamic investment opportunities for Advent as legacy software vendors look to reposition themselves as SaaS vendors and SaaS vendors aim to scale globally. The Internet will continue to fundamentally reshape commerce and social interactions, creating an opportunity set of high-growth and strategically attractive target companies. Content remains king, but consumption patterns – whether by consumers or enterprises – are structurally migrating to Internet delivery models, straining the traditional analogue media and advertising markets. All of these trends are driving an insatiable demand for on-demand data, creating much-needed growth opportunities in the telecoms market.
More than ever before, TMT represents a high-growth and fast-moving sector, where value creation potential is significant and deep industry knowledge is critical to identifying the right investment opportunities. Advent is a long-standing investor in the sector, and through its global TMT team’s ongoing strategic reviews, we continue to target niches or industry verticals with significant growth potential and where Advent has unique operational and strategic insights. Through a rigorous and bottom-up sourcing methodology, we target market- leading companies with clear value creation plans and strong earnings growth potential, often through international or inorganic expansion. Oberthur Technologies and WSiP are examples of this. Our deep bench of technology operating partners remains fundamental to our sourcing methodology and investment philosophy. Working in a collaborative manner, our operating partners help management teams navigate this dynamic sector and realize their value creation plans.