Private equity investments in software are getting older, with more than 800 portfolio companies held for five years or longer and 363 held for over seven years. Many of the remaining investments were acquired during the elevated valuations of 2020 and 2021. At the same time, software has come under increased scrutiny as a sector potentially vulnerable to disruption from AI. With exit opportunities remaining limited and valuations under pressure, general partners (GPs) have been forced to hold these investments longer than originally anticipated.
Source: S&P Global Market Intelligence, Apollo Chief Economist, The Business Week Graphic
This graph was produced by Lucas Juery, CFA, CFPⓇ , and is not intended to provide financial advice.
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