Pictet has launched a technology-themed private equity fund that aims to benefit from the value created by private companies that are staying private for longer.

Pictet Thematic Private Equity – Technology fund will invest in around 20-25 ‘best in class’ funds globally and up to 20 direct or co-investments in private companies.

The fund is the first thematic fund from Pictet Alternative Advisors (PAA), a wholly owned alternative investment business of Pictet Group, and will be distributed internationally by Pictet Asset Management.

PAA has set up 11 multi strategy funds and manages segregated accounts with $17bn of assets under management, having started investing in private equity in the 1990s.

As companies stay private for longer, a growing share of the investment value is created prior to the listing, when the companies are still private, said the firm.

Pierre Stadler, head of thematic private equity, said technology remains a “fertile sector” with “many attractive investment opportunities”.

“Software, for example, remains the fastest-growing sector globally, with an expected double digit compounded annual growth rate over the next five years. And, while Internet use has surged, there is still much further to go, with 41% of the world still lacking access to the web.”

Stadler also said that once the technology fund is established, the firm will consider “our next move, possibly into healthcare”.