Debt-backed tech buyouts trail venture funds with annual returns of about 15%

Debt-financed acquisitions of technology companies have delivered weaker returns than public equities. US buyout funds returned about 15% annually over the past decade, trailing venture funds. In its “Is Private Equity Cooked?” report published on November 4, 2026, Andreessen Horowitz said US buyout funds underperformed the Russell 3000 over that period. The findings question the returns from acquiring control of businesses, improving their value and selling them while carrying substantial debt. US venture funds overall returned about 18% annually, beating the index by 2.3 percentage points. Low interest rates helped underpin buyouts’ earlier success.

Source: TokenPost