Enterprise software: resilience in uncertain times?

Structural resilience

Enterprise software companies provide essential tools and services to businesses, often serving as mission-critical components of their operations. 

Revenues in the sub-sector are 'sticky'. Even during economic downturns or periods of high inflation, subscription-based, multi-year contracts and high switching costs contribute to stable and recurring revenues. They also reduce customer churn rates and make future cash flows more predictable. Together, these qualities are valued highly by investors, because they translate into lower-risk companies that perform robustly and can be resilient throughout the economic cycle.

Outlook and trends

Key innovations and trends support a favourable outlook for enterprise software: 

  • Continued growth in cloud computing: cloud computing is a major driver of demand for enterprise software.
  • Increased investment in digital transformation: businesses are investing more in digital transformation initiatives in order to make them more efficient and competitive. 
  • Human capital: enterprise software is disinflationary. Particularly at a time of low unemployment and high wage growth, cost-savings can be realised by automating processes. 
  • Increased investment in cybersecurity and data protection: companies are placing greater emphasis on safeguarding sensitive information.
  • A shift to hybrid and remote work: this has created a new need for enterprise software solutions that can support distributed workforces.
  • Product evolution: regularly updating and improving enterprise software products not only helps retain existing clients but also attracts new ones.

Grand View Research expects the enterprise software market to grow at a compound annual growth rate (CAGR) of 11.9% from 2023 to 2028.1 This growth will be driven by demand for cloud-based enterprise software solutions, such as customer relationship management (CRM), enterprise resource planning (ERP), and human capital management (HCM) applications.

Investing in enterprise software

As the digital landscape continues to evolve, enterprise software companies are well-positioned to play an integral role in shaping the future of business operations and technology, ensuring their resilience and attractiveness in the world of investments.

Limited partners and private equity end investors looking to invest in the enterprise software sector should focus on funds that are managed by experienced investment teams with a strong track record of success in the sector.

These general partners should have a deep understanding of the enterprise software market and the trends that are driving growth, such as cloud computing, digital transformation, and hybrid and remote work. They should also have a clear investment strategy and a proven ability to identify and invest in high-quality companies.


1. Business Software And Services Market Worth $1,153.75 Billion By 2030 , Grand View Research, December 2022.

Important Disclosures

This material has been prepared by Titanbay Ltd and its affiliates (together, “Titanbay”) for informational purposes only, for sophisticated and eligible investors only. It is not and may not be relied on in any manner as legal, tax or investment advice, any recommendation or opinion regarding the appropriateness or suitability of any investment strategy, or as an offer to sell or a solicitation of an offer to buy any financial instrument. Titanbay does not provide investment advice or make recommendations.

All information and any statements presented herein are considered to be accurate at the time of production unless otherwise stated and have been prepared from sources we believe to be reliable. No representation or warranty or guarantee, expressed or implied, is given as to the truth, accuracy or completeness of the information or opinions contained herein. No reliance may be placed for any purposes on the information or opinions contained in this communication and material aspects of descriptions contained in the communication and supporting materials are subject to change without notice. Non-affiliated entities mentioned are for informational purposes only and should not be construed as an endorsement by or sponsorship of Titanbay. 

Any forecasts, figures, investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. Any views, opinions and estimates expressed herein constitute personal judgments of the contributor,  are based on current market conditions and are subject to change without notice. This communication in no way constitutes Titanbay research and should not be treated as such. 

Investment in private placements, and private equity via feeder funds in particular are complex, highly illiquid, and speculative in nature and involve a high degree of risk. The value of an investment may go down as well as up, and investors may not get back their money originally invested. Investors who cannot afford to lose their entire investment should not invest. Past performance is not indicative of future performance. There can be no assurance that any current or future investments will achieve results comparable to historic results or that any investment objectives or return targets will be met. For private equity investments via feeder funds, investors will typically receive illiquid and/or restricted membership interests that may be subject to holding period requirements and/or liquidity concerns. Investments in private equity are highly illiquid and those investors who cannot hold an investment for the long term (at least 10 years) should not invest. Please refer to the Confidential Offering Memorandum of the Titanbay Master Fund SCSp-RAIF before making any investment decisions.

Titanbay Ltd is an Appointed Representative of Brooklands Fund Management Limited which is authorised and regulated by the Financial Conduct Authority with firm reference number 757575. Copyright Titanbay 2023.