Key Takeaways
- • Francisco Partners CEO Dipanjan "DJ" Deb says the software industry is not dead, arguing corporations will have existing vendors embed AI tools rather than rip out their software, potentially giving software a "rebirth."
- • Francisco Partners raised $21 billion across Francisco Partners VIII (flagship) and Francisco Partners Agility IV (middle-market), up from $17 billion for its prior fund set, per Deb.
- • Deb says the firm will stay in the mid-market, with about 20% of flagship investments above $2 billion enterprise value and Agility equity checks ranging from $25 million to $300 million.
- • Deb expects DPI to stay weak near term, calls 2021-2024 likely poor vintages and 2026-2028 likely strong, and does not expect a functioning IPO market until Anthropic and OpenAI list.
- • Francisco Partners has never done a continuation vehicle, though Deb says it would consider one depending on terms and LP demand.
Summary
In a Pensions & Investments Face to Face interview published November 12, 2026, Francisco Partners CEO Dipanjan "DJ" Deb said he is simultaneously energized and confused by the current rate of change, and rejected the view that the software industry is finished. Deb argued that corporations will ask existing software vendors to embed large language model tools into their products rather than replacing them, which he said the market has overlooked. He said Francisco Partners screens each investment with an AI-resilience scoring system, applying a Porter's Five Forces framework with an AI overlay, and emphasized that the key question is how to price AI risk rather than whether it exists. Deb said the firm avoids businesses without intellectual property or regulatory moats that provide time to exit.
On fundraising, Deb said the firm raised $21 billion across Francisco Partners VIII and its Agility IV middle-market fund, compared with $17 billion for its prior funds. He said LPs asked whether private equity still had a long-term role, and that he responded affirmatively while acknowledging that some portfolio companies, particularly software businesses, would be impacted and that the firm would lose money on some investments. Deb said the firm had several funds above 3x gross and expects future returns closer to 2.5x. The firm will remain in the mid-market, with the Agility fund, at $4.6 billion, focused on checks of $25 million to $300 million.
On industry outlook, Deb acknowledged that distributions (DPI) have been low for the industry, with this set to be the fifth straight weak year. He said he is not optimistic about a near-term IPO revival, noting that 2026's IPO activity was dominated by SpaceX and, to a lesser extent, Cerebras, and that the market is likely waiting on Anthropic and OpenAI. He expects DPI to improve over one to two years and said new liquidity vehicles, including continuation vehicles, will continue to emerge. Francisco Partners has never executed a continuation vehicle, Deb said, though it would consider one depending on facts, terms and customer needs.
Deb also said the firm is rethinking junior hiring, arguing that LLM tools will replace much of the modeling and presentation work associates currently perform, and that the firm is working with HR to change hiring specifications.
On fundraising, Deb said the firm raised $21 billion across Francisco Partners VIII and its Agility IV middle-market fund, compared with $17 billion for its prior funds. He said LPs asked whether private equity still had a long-term role, and that he responded affirmatively while acknowledging that some portfolio companies, particularly software businesses, would be impacted and that the firm would lose money on some investments. Deb said the firm had several funds above 3x gross and expects future returns closer to 2.5x. The firm will remain in the mid-market, with the Agility fund, at $4.6 billion, focused on checks of $25 million to $300 million.
On industry outlook, Deb acknowledged that distributions (DPI) have been low for the industry, with this set to be the fifth straight weak year. He said he is not optimistic about a near-term IPO revival, noting that 2026's IPO activity was dominated by SpaceX and, to a lesser extent, Cerebras, and that the market is likely waiting on Anthropic and OpenAI. He expects DPI to improve over one to two years and said new liquidity vehicles, including continuation vehicles, will continue to emerge. Francisco Partners has never executed a continuation vehicle, Deb said, though it would consider one depending on facts, terms and customer needs.
Deb also said the firm is rethinking junior hiring, arguing that LLM tools will replace much of the modeling and presentation work associates currently perform, and that the firm is working with HR to change hiring specifications.
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