Major Asset Managers Struggle to Ease Investor Concerns Over AI Impact on Software Holdings
Private capital leaders are defending their portfolios as AI fears hit software stocks. Despite reassurances of low risk, share prices remain under pressure.
Insights:
A selloff in software stocks driven by fears that artificial intelligence will render software irrelevant has pushed down the share prices of major alternative asset managers in the US 
US. This market-led repricing is affecting large managers' market valuations despite reported new client inflows and a resurgence in M&A activity, signaling a significant reassessment of AI disruption and private credit risk across private-market portfolios. Over the past six months, the downturn has materially reduced valuations, with Apollo Global Management, Inc. down approximately 11 percent and Blackstone Inc. down about 24 percent. KKR & Co. Inc. has seen a decline of roughly 29 percent, while Ares Management Corporation and other peers have fallen by 30 percent or more. Blue Owl Capital Inc. has experienced a drop exceeding 36 percent.
US. This market-led repricing is affecting large managers' market valuations despite reported new client inflows and a resurgence in M&A activity, signaling a significant reassessment of AI disruption and private credit risk across private-market portfolios. Over the past six months, the downturn has materially reduced valuations, with Apollo Global Management, Inc. down approximately 11 percent and Blackstone Inc. down about 24 percent. KKR & Co. Inc. has seen a decline of roughly 29 percent, while Ares Management Corporation and other peers have fallen by 30 percent or more. Blue Owl Capital Inc. has experienced a drop exceeding 36 percent.
