Episode overview

Mark Bryan and Tom Matthews from Pemba Capital Partners joined Steve Grace on Give It A Nudge to talk about what it means to be one of the most active private equity investors in Australian technology, what they look for in a company before investing, how they work with management teams after they invest, and what founders should understand about the private equity model before approaching a firm. Pemba has completed more than 20 tech investments in recent years, spanning software, SaaS, and technology-enabled services businesses across Australia.

What Pemba looks for in a technology investment

Pemba focuses on software and technology-enabled services businesses with recurring revenue, defensible market positions, and management teams that want a capital partner for growth rather than a passive investor. The firm is typically investing in companies that are past the early startup stage and have proven their model, but are not yet operating at the scale their opportunity justifies. The investment thesis is about acceleration: using capital and operational expertise to help a good business get to its potential faster.

More than 20 tech investments in recent years

Pemba’s focus on technology has been consistent and deliberate. More than 20 investments in Australian technology businesses in recent years makes them one of the most active firms in the sector. Mark and Tom explain that the technology sector’s combination of recurring revenue, low capital intensity, and scalable distribution makes it a natural focus for a firm that wants to build value systematically rather than through financial engineering.

Working with management after investment

The post-investment relationship is something Pemba puts as much thought into as the deal itself. Tom describes the firm’s approach as genuinely collaborative: they work with management teams on strategy, hiring, acquisitions, and international expansion rather than managing by KPI dashboard from a distance. The best portfolio company relationships are ones where management teams feel they have a senior partner in the business rather than an oversight function.

What founders should know before approaching private equity

Mark and Tom are direct about what they see in founders who approach them well versus founders who approach them poorly. The firms that get the most value from a private equity relationship come in with a clear vision of what they want to achieve, an honest assessment of what they need help with, and a genuine interest in partnership rather than just capital. Founders who see private equity purely as a liquidity event often find the relationship less productive than founders who see it as a growth tool.