Main Capital Partners’ Managing Partner, Charly Zwemstra, believes that in private equity, focus outperforms diversification. Speaking during his keynote at the Benelux Private Equity Conference in Amsterdam, he made a strong case for the power of specialisation, arguing that firms that stay disciplined in one sector or strategy can deliver superior long-term results.

Founded in the Netherlands, Main Capital manages $6.8bn in assets and invests exclusively in B2B software firms across Europe and the US. The firm currently holds 55 portfolio companies and completes roughly 60 acquisitions per year, most of them add-ons, following its proven buy-and-build approach. Over 36 exits, Main has achieved an average multiple of 4.7x, a performance Zwemstra attributes to focus and depth.

“We are a very specialised firm,” he said. “You don’t have to diversify into other strategies to scale quickly. The largest and most successful fundraisings today come from firms that specialise.”

He cited Thoma Bravo as a case in point, describing the software investor’s $32bn in recent fundraisings as evidence that specialist managers continue to outperform. He added that LPs are increasingly favouring mid-market and lower mid-market firms with deep expertise rather than large buyout groups expanding into multiple asset classes.

Zwemstra noted that many major players have pursued “strategy drift” by entering credit and private debt, often with limited returns. “EQT sold its credit business and its stock price went up,” he remarked, contrasting that with firms whose diversification has weighed on performance.

Main Capital’s upcoming fundraising will launch in January, targeting $5bn across two vehicles. The firm also plans to expand its use of continuation vehicles, which Zwemstra called a “natural way to extend growth” for star portfolio companies without straying from the firm’s strategy.

He described continuation vehicles as a powerful tool to preserve focus while creating liquidity for existing investors. “It’s not a strategy drift, it pushes your growth further,” he said, adding that Main recently combined portfolio companies Exxellence and DocuMaster into such a vehicle, supported by $300m for further buy-and-build expansion.

Zwemstra also addressed the growing role of artificial intelligence in software investing. While AI is a major growth driver, he cautioned against overestimating its short-term productivity benefits. “After initial enthusiasm, we found that the more AI was used, productivity actually declined,” he said, citing both Main’s internal findings and MIT research. “You have to work hard to make AI a success.”

He also noted that Europe’s software sector is entering a period of structural tailwinds. Unlike other industries, software remains largely insulated from tariff disputes and US market volatility, while the push for digital sovereignty continues to fuel growth across the continent. With more software companies in Europe than in the US, he argued, the opportunity set for European investors remains deep.

Main Capital’s track record suggests that focus pays off. Zwemstra closed by reaffirming that specialisation, not diversification, will define the next generation of outperformers in private equity. “You can grow as a specialist firm,” he said. “If you look at TA, Thoma Bravo, or Veritas, they’re the winners. They raise the largest funds, grow the fastest, and have the best returns.”

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