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๐Ÿ“Š#ai-disruption#pe-investments#software-sectorFreshcollected in 14m

PE Faces AI-Driven Software Reckoning

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๐Ÿ“ŠRead original on Bloomberg Technology

๐Ÿ’กAI upending PE's software investmentsโ€”critical for founders seeking funding shifts

โšก 30-Second TL;DR

What changed

Apollo's Sambur predicts prolonged software pain for PE

Why it matters

Highlights AI's rapid disruption in software, forcing PE firms to rethink strategies. AI practitioners may see shifts in funding landscapes for software startups.

What to do next

Review your startup's AI integration to attract PE investors adapting to software disruption.

Who should care:Founders & Product Leaders

๐Ÿง  Deep Insight

Web-grounded analysis with 7 cited sources.

๐Ÿ”‘ Key Takeaways

  • โ€ขApollo executive Sambur warns of prolonged software pain for private equity (PE) firms, as they missed AI's disruptive signals in their favorite investment sector[1][2].
  • โ€ขPE software deal volume slowed 21% in 2025 to 3,665 deals, driven by AI risks and pricing uncertainty, with older vintages (2018-2020) most vulnerable[2].
  • โ€ขNearly one in three software deals (29%) now involves AI, expanding beyond software into professional services, fintech, and IT services amid labor shortages and productivity needs[1].

๐Ÿ”ฎ Future ImplicationsAI analysis grounded in cited sources

AI is forcing a 'great reset' in software valuations, with PE facing exit backlogs unless public markets stabilize; AI-enabled firms may dominate, but macro risks like regulation persist, while selective opportunities emerge in resilient infrastructure and transformed SaaS[1][3][6].

โณ Timeline

2024-12
Application software deals peak at 4,638 globally for PE/VC firms[2]
2025-12
Software deals drop 21% to 3,665 amid rising AI disruption concerns[2]
2026-01
Public software stocks begin sell-off on AI fears, with Palantir down 22%, Adobe/Salesforce/ServiceNow down 25-30%[5]
2026-02
Anthropic releases Claude Opus 4.6 with autonomous legal/business tools, triggering $1.2trn software market wipeout[3][4][6][7]
2026-02
Apollo's Sambur warns of PE software reckoning; firms initiate AI vulnerability assessments[ARTICLE][2][6]

๐Ÿ“Ž Sources (7)

Factual claims are grounded in the sources below. Forward-looking analysis is AI-generated interpretation.

  1. withintelligence.com
  2. spglobal.com
  3. allianz.com
  4. perspectives.agf.com
  5. nasdaq.com
  6. harbourvest.com
  7. quoteddata.com

Apollo executive Sambur warns buyout firms are nearing a software reckoning after missing AI's disruptive signals. Private equity's favorite sector faces prolonged pain. AI technologies are upending traditional investments.

Key Points

  • 1.Apollo's Sambur predicts prolonged software pain for PE
  • 2.Buyout firms overlooked AI upending software sector
  • 3.Software is private equity's favorite investment area
  • 4.Firms on brink of reckoning due to tech shifts

Impact Analysis

Highlights AI's rapid disruption in software, forcing PE firms to rethink strategies. AI practitioners may see shifts in funding landscapes for software startups.

#ai-disruption#pe-investments#software-sectorprivate-equity-software
๐Ÿ“ŠRead original article on Bloomberg Technology
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Original source: Bloomberg Technology โ†—