Headroom in Tech Budgets Offers Long-term Upside for Private Capital
June 13, 2022 | iCapital
Key takeaways from this white paper:
• Current valuations for tech providers may seem high, but the headroom for increases in corporate tech expenditures suggests that this is a long-term trend to stay invested in.
• Financial companies are leading corporate spending on technology, but investment from other sectors is surprisingly low. Taking finance as a benchmark and looking at upward trends in business IT budgets suggests there is the potential for sustained upside.
• As tech budgets increasingly focus on digital transformation, budgets for innovation are likely to continue to rise. Private capital is best placed to provide funding for these innovative sectors and to take advantage of the opportunity that these investments offer.
