Francisco Partners Raises $21 Billion to Hunt Software Bargains

Software valuations came under heavy pressure in early 2026 as investors warned that generative AI could replace some business applications and weaken the per-seat subscription model. The selloff, dubbed the “SaaS-pocalypse,” has created an opening for technology-focused buyout firms that believe recurring revenue, embedded workflows and high switching costs will continue to protect stronger software companies.

By June 2026, Francisco Partners had secured more than $18 billion for Francisco Partners VIII and Agility Fund IV. Together with the $3.3 billion credit fund closed on Jan. 23, 2025, the firm’s recent fundraising totals roughly $21 billion. Co-founder Dipanjan “DJ” Deb said AI would disrupt some products but would not destroy the software industry, as the firm assesses acquisition targets whose valuations may have fallen more sharply than their fundamentals.