A credit crunch may be clogging the pipeline of multibillion-dollar leveraged buyouts, but the tightening of the credit markets has not yet closed the middle market. In the hopes that dealflow there will continue to hum along, private equity firms such as Silver Lake Partners and General Atlantic LLC may be getting ready to go on acquisition sprees of tech companies in the second half of 2007.

Last week, PEhub revealed that Silver Lake — the first LBO firm to concentrate solely on tech deals — was raising a middle-market fund. According to a regulatory filing, the vehicle had already secured over $726 million, and it is being marketed with a $750 million target and $1 billion cap.

Meanwhile, General Atlantic welcomed heavyweight technology dealmakers — Jonathan Miller and Ross Levinsohn — to its ranks. Miller, the former chairman and CEO of America Online, and Levinsohn, the former president of Fox Interactive Media at News Corp., are now advisers to the firm's media and consumer sector.

With AOL's former top dog and the man who spearheaded Fox's purchase of MySpace and IGN.com, it won't be long until General Atlantic is spending even more money on media and technology plays. And chances are that the two will not only be advising the LBO firm, but co-investing with it. PaidContent.org says that Miller and Levinsohn are on the verge of launching their own tech roll-up fund that could close with up to $1 billion under its belt. With all that money just waiting to be spent, the fall and winter could end up being hot for technology M&A.

For more on private equity and middle-market tech deals, be sure to attend Tech Confidential's Convergence 2.0 conference on Sept. 17.  —George White

See PEhub post (subscription required)
See the paidContent.org post
See the General Atlantic press release
See more on Tech Confidential's Convergence 2.0 conference
See The Deal's interview with Silver Lake's Glenn Hutchins