Private equity firms are showing increased interest in technology companies, especially software-enabled services companies, according to Raj Seth (pictured), managing director at GE Capital.

Part of the interest is driven by the sharing aspect of newer software programs, which have lower up-front costs for middle-market and are cheaper to deliver and deploy. Before buying these types of software companies, PE firms can also get a good read on the lifetime value of a customer, says Seth. Firms will likely be looking for businesses that they can build on.

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