A number of top-tier private equity firms, including Bain Capital, Silverlake, and KKR, are emerging as major beneficiaries of the AI-driven revaluation of technology and infrastructure assets, according to a report by the Financial Times.
Despite subdued returns across parts of the private equity landscape – where large volumes of legacy deals remain unsold and software investments face valuation pressure from AI disruption – select investments have delivered exceptional gains as demand for AI-enabling technologies accelerates.
Bain Capital’s investment in Japanese semiconductor group Kioxia, originally carved out of Toshiba in 2018 in a landmark transaction, is a notable example. Initially hampered by chip market volatility and a failed IPO attempt, the business has since benefited from surging demand for memory chips linked to AI infrastructure. The investment is now expected to generate gains exceeding $15bn, with returns approaching 20 times invested capital, according to reports.
In parallel, other long-held technology and infrastructure positions have also appreciated significantly. Silver Lake’s investment in Dell Technologies has benefited from renewed investor enthusiasm tied to AI-related hardware demand, with the firm maintaining a substantial stake that has appreciated markedly alongside the company’s share price performance.
Private equity firms have also realised substantial value through exits in industrial and data-centre-adjacent businesses. KKR recently generated a multiple of approximately 15 times its investment from the sale of data-centre equipment supplier CoolIT Systems, underscoring strong appetite for AI infrastructure supply-chain assets.
Meanwhile, Advent International is poised to crystallise significant gains from Innio, a power systems business originally carved out of General Electric. Following its public listing at a valuation above $20bn, the investment has delivered multi-billion-dollar returns for Advent and co-investors, reflecting strong demand for energy and infrastructure solutions tied to data-centre expansion.
Overall, while parts of the private equity industry continue to grapple with valuation pressure and slow exit markets, a subset of investments positioned within AI-linked supply chains is generating outsized returns, highlighting a widening performance gap across managers and strategies.
