More PE Funds Than McDonald’s—Why That is Bullish for Founder Exits and Raises
On Oct 1, 2025, a KKR partner shared a stat on a Bloomberg stage that made headlines: there are roughly 19,000 private equity (PE) funds in the United States — compared with about 14,000 McDonald’s locations. It’s a playful comparison, but it captures a serious shift in market structure. For founder-led software companies, more funds — and more capital — translate into greater competition to back or buy the best businesses.
The Supply–Demand Mechanic That Drives Outcomes
M&A outcomes are powered by supply vs. demand. On the demand side, investor appetite for private markets has been strong for years, spawning new funds and larger vehicles at established managers. On the supply side, the number of truly durable, growing, mid-market software companies hasn’t expanded at the same pace. That imbalance — many bidders, few standout assets — supports pricing and terms even when macro signals are mixed.
Dry Powder: Abundant… and Aging
The crowding isn’t just about fund count. It’s also about undeployed capital. As of mid-2025, S&P Global estimates that global PE dry powder sits near $2.5 trillion across strategies (down modestly from the 2023 peak, but still enormous). In buyouts specifically, the stockpile is about $1.2 trillion, and roughly a quarter (≈24%) has been on the sidelines for 4+ years. That aging capital raises the urgency to deploy — LPs expect managers to put money to work and realize returns. Urgency typically shows up as faster timelines, broader outreach, and more flexible structures when a desirable asset hits the market.
What This Means For Founders Right Now
If you’re considering a growth round, majority recap, or full sale, this landscape can work in your favor — if you harness it. Three practical implications:
More credible bidders → more leverage. A deeper bench of qualified funds (plus strategics) allows a well-run process to create real choice and backup options — key to both value and certainty.
Valuation support from competition. When buyers compete, they sharpen pencils on structure (earn-outs, rollovers, preferences), stretch on price for conviction, and move aggressively on diligence and approvals to win.
Creative paths to “fit.” In crowded buyer universes, winning often means tailoring to founder goals: board dynamics, product vision, hiring plans, second-bite economics, or earn-out alignment.
Process Quality Matters More Than Ever
In a world of 19,000 funds, not all capital is equal. The difference between a good outcome and a great one is often process design: which buyers get the book (and when), how your story is framed, which KPIs and cohorts you spotlight, how you handle customer reference flows, what deal structures you enable (minority with structured protections, majority with rollover, or full sale), and the cadence used to keep multiple parties moving in sync.
Process is also the antidote to inbound-driven drift. Responding to the first term sheet that lands in your inbox can feel efficient — but it rarely maximizes value or partner fit. A deliberate, competitive process uses the market’s breadth to your advantage.
Where Peak Technology Partners Fits
At Peak Technology Partners, we work exclusively on the sell-side with founder-led technology companies — never representing private equity buyers. Our role is to engineer competition: sharpen the narrative, run a disciplined buyer/investor sequence, and convert today’s abundant (and increasingly impatient) capital into superior valuation, terms, and long-term partner fit.
Bottom Line
There may now be more PE funds than McDonald’s in the U.S., and there’s still trillions in dry powder waiting to be deployed. That combination is a bullish setup for founders. With the right preparation and a structured process, you can turn this market structure into leverage — and outcomes that align with your vision.
Sources:
Bloomberg coverage of the “19,000 vs. 14,000” remark (KKR partner at Bloomberg event):
https://www.bloomberg.com/news/articles/2025-10-01/-crazy-right-more-pe-funds-than-mcdonald-s-signals-pressure Bloomberg
S&P Global Market Intelligence (global PE dry powder ≈$2.5T mid-2025):
https://www.spglobal.com/market-intelligence/en/news-insights/articles/2025/7/global-private-equity-dry-powder-continues-fall-from-2023-peak-91374487 S&P Global