We have done 400 software deals. The playbook works every single time because the economics of software are simply that good.
Software is the best business model ever invented. High margins, recurring revenue, low capital intensity. Once you see it, you cannot unsee it.
The rest of PE woke up to software about ten years after we did. By then we had already done 200 deals and knew the playbook cold.
I do not need to understand the code. I need to understand the customer retention rate. If 95% of customers renew every year, the business almost runs itself.
Puerto Rico taught me that nothing is guaranteed. That hunger never goes away, no matter how many billions you manage.
Every company we buy, the first thing we do is look at the P&L and ask: where is the waste? Software companies are shockingly wasteful before PE ownership.