February 2026
The message from the investment world is loud and clear: technology isn’t slowing down, and neither is the money flowing into it.
Canadian private equity firm Novacap just closed its seventh technology-focused buyout fund, Tech Fund VII, at nearly $3.8 billion, blowing past its original $2.75 billion target by more than a billion dollars. And they did it in under a year.
That’s not just a fundraising win. It’s a signal about where the smart money is heading in 2026.
What Is Novacap and Why Does This Fund Matter?
If you haven’t heard of Novacap, here’s the quick version: they’re a Montreal-based private equity firm founded in 1981 that has quietly become one of North America’s most active mid-market technology investors. With this latest fund, they now manage more than $12 billion in assets under management.
Their playbook isn’t about betting on scrappy startups hoping one becomes the next unicorn. Instead, Novacap targets established, profitable B2B software companies and technology-enabled services businesses that already have traction but need capital and strategic support to scale globally.
Think less Silicon Valley garage, more “we found a great enterprise software company and we’re going to help them expand internationally.” That focused, disciplined approach is exactly why institutional investors keep writing bigger checks.
Why Technology Private Equity Funds Are Booming in 2026
Here’s what makes Tech Fund VII interesting beyond the headline number: the speed of the raise tells us something important about where institutional capital is flowing right now.
Pension funds, sovereign wealth funds, and family offices (the serious long-term money) are increasingly allocating to private technology funds. The reasons are compelling.
Public markets remain volatile for tech stocks, and long-only equity strategies carry unpredictable risk. Private equity offers a way to maintain exposure to technology growth without the daily noise of the stock market.
B2B software companies built on subscription models generate predictable, recurring revenue, which makes them ideal investment targets. When you can underwrite future cash flows with confidence, deal math gets a lot easier.
AI adoption and digital transformation still have enormous runway. Every industry is mid-way through digitizing its core operations, which creates a long tail of opportunity for software and services companies that serve those markets.
Pascal Tremblay, Novacap’s President and CEO for Technologies and Digital Infrastructure, credited the fundraising success directly to investor confidence in a strategy that has proven itself across multiple market cycles. That track record includes 29 platform investments and more than 95 add-on acquisitions since inception.
The Deals That Built Novacap’s Reputation
It’s easy to raise a big fund on paper. It’s harder to actually deploy capital well and exit at strong multiples. Here is where Novacap has been putting its money to work.
Integral Ad Science: Novacap’s TMT VI fund completed a $1.9 billion privatization of this digital advertising measurement platform. Co-investors from the limited partner base participated, which signals broad conviction in the deal thesis.
Eddyfi Technologies: Novacap recently agreed to sell this non-destructive testing technology company for approximately $1.45 billion. That’s a clean full-cycle result: acquire, build operational value, exit at a premium.
These aren’t one-off wins. They are the kind of exits that demonstrate repeatable process and give LPs the confidence to commit to the next fund at an even larger size.
Beyond Software: Novacap’s Digital Infrastructure Push
One thing that sets Novacap apart from a purely software-focused PE shop is its growing digital infrastructure portfolio. In recent years, the firm has built out holdings across:
Data centers in New York, Tennessee, and Florida provide the physical computing backbone for cloud workloads and enterprise applications.
FyberCom, a fiber network operator, gives Novacap exposure to the connectivity layer that modern businesses depend on.
TAG Towers, a wireless tower infrastructure developer, positions the firm in the fast-growing wireless infrastructure space.
This dual focus on software and infrastructure is deliberate. As AI workloads balloon and cloud adoption deepens, the physical assets that power digital services become increasingly valuable. Novacap is investing at both the application and infrastructure layers simultaneously, a strategy that creates multiple paths to long-term returns.
What the $3.8 Billion Technology Private Equity Fund Means for SaaS Companies
If you’re leading a growing software business and you’ve been wondering whether private equity is a path worth exploring, Novacap’s story carries a direct message.
There is serious capital, billions of dollars, actively looking for exactly what you may have built. Firms targeting B2B software investments aren’t looking for moonshots. They’re looking for companies with real revenue, real customers, and room to scale. If that describes your business, the conversation is worth having.
PE backing isn’t the right fit for every company. You will give up some control and you will have performance expectations to meet. But for the right company at the right stage, private equity can mean the resources to move from regional player to global competitor far faster than organic growth alone would allow.
The Bigger Picture: Private Equity Is Reshaping Tech Growth in 2026
Novacap closing a $3.8 billion technology fund in under 12 months isn’t just a company milestone. It’s a data point in a larger story about how technology gets funded in 2026.
Venture capital continues to dominate early-stage bets. But for the vast middle of the market, companies too big to be startups and not ready or not interested in going public, private equity is increasingly stepping in as the engine of growth capital.
Large buyout funds like Tech Fund VII are positioned to become major forces in the next phase of global digital transformation. As software continues to dominate modern business operations, investors are focusing on companies with predictable growth and recurring revenue streams. That combination of stability and scale is exactly what technology private equity funds are built to find.
Tech Fund VII is proof that investors believe that engine has a lot of miles left in it.
Frequently Asked Questions
What is Novacap Tech Fund VII? Novacap Tech Fund VII is the seventh technology-focused buyout fund raised by Novacap, a Montreal-based private equity firm. The fund closed at nearly $3.8 billion in early 2026, exceeding its original $2.75 billion target. It will invest primarily in North American B2B software companies, technology-enabled services, and digital infrastructure businesses.
Why did Novacap’s Tech Fund VII exceed its fundraising target? The fund surpassed its target due to strong institutional investor confidence in Novacap’s track record and its disciplined approach to technology private equity. The firm’s previous funds delivered consistent returns across multiple market cycles, including high-profile exits like the $1.9 billion privatization of Integral Ad Science and the $1.45 billion sale of Eddyfi Technologies.
What types of companies does Novacap invest in? Novacap focuses on established, profitable mid-market companies across B2B software, technology-enabled services, and digital infrastructure. The firm typically invests in businesses that already generate stable, recurring revenue and are positioned to scale internationally with the right capital and strategic support.
How does private equity technology investment differ from venture capital? Venture capital primarily targets early-stage startups with high growth potential but significant risk. Private equity technology funds like Novacap’s target more mature companies with proven business models and existing revenue. PE firms focus on operational improvements, acquisitions, and international expansion rather than early product development, which generally results in lower risk and more predictable return timelines.
What does Novacap’s fundraising success mean for B2B software companies in 2026? The successful close of Tech Fund VII signals that there is significant capital available for established software businesses looking to scale. Growing SaaS and B2B software companies now have more options beyond venture capital or going public. Private equity firms are actively seeking businesses with predictable revenue, strong retention, and clear expansion opportunities.
Is private equity a good option for SaaS companies? Private equity can be an excellent growth option for SaaS companies that have moved past the startup stage and are generating consistent ARR. PE firms typically provide growth capital, operational expertise, acquisition support, and access to global networks. The tradeoff involves sharing equity and meeting defined performance milestones, so it suits founders who are focused on scaling rather than maintaining full control.
What is the total AUM of Novacap after Tech Fund VII? Following the close of Tech Fund VII, Novacap’s total assets under management exceed $12 billion across its four investment strategies: Technologies, Digital Infrastructure, Financial Services, and Industrie
