PE Firms Weigh FactSet Deals Amid AI Valuation Slump
Private equity firms are weighing deals for data providers like FactSet following AI-led selloffs. Investors remain cautious about long-term business viability.
The report explores the tension between falling valuations and AI-driven uncertainty in the financial data sector. Private equity firms Thoma Bravo and Hellman & Friedman have explored a potential acquisition of FactSet Research Systems Inc. following a 39% decline in its share price over the past six months. Similar market pressure has affected Morningstar, Inc. and Gartner, Inc., which have seen their stock values drop by 27.6% and 29.5%, respectively, since early September.
Despite the attractive entry points, investors remain hesitant. The primary concern is whether artificial intelligence will disrupt the business models of firms that package and sell financial data. This anxiety was exacerbated by the release of Anthropic’s Claude Cowork AI tool, which triggered a broad selloff affecting various sectors, including technology giants like Microsoft Corporation.
