Tech is once again the darling of the M&A world. Recent deals that demonstrate how rife the sector is with activity include the initial public offering of Snapchat developer Snap Inc. (NYSE: SNAP), which soared 44 percent on its first day of trading, and the announced purchase of Whole Foods by Inc. (Nasdaq: AMZN). Many observers are citing tech as the sector that will power M&A activity this year and beyond.

These expectations have brought new attention to what it means to be a private equity investor in technology businesses today, and how that has changed for both general partners (GPs) and limited partners (LPs). Many firms that are not considered ”tech shops” in the usual sense are making significant investments in later-stage technology companies; however, these are seen as technology-enabled businesses serving traditional markets, rather than pure-play technology companies.

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