Private equity firm EQT says recent volatility in public technology markets, driven by concerns over artificial intelligence disruption, could create attractive entry points for new investments in the software sector, according to a report by Bloomberg.
Per Franzen, chief executive of EQT, said the current environment may support selective dealmaking in software, particularly where businesses are well positioned to use AI to improve efficiency, expand margins and reinvest cost savings into growth. He noted that the firm remains disciplined in avoiding over-concentration in any single sector.
According to Franzen, market participants are becoming better at distinguishing between companies that are likely to benefit from AI and those more exposed to disruption. He suggested that over the coming quarters, dislocations in valuations could offer opportunities to acquire high-quality assets at more appealing prices.
Investor concerns have been building around private capital exposure to software businesses, particularly following advances in AI tools that are seen as potentially disruptive to industries such as financial research and real estate services. These pressures are most visible among buyout firms that increased their exposure to technology during the previous dealmaking cycle.
EQT manages around €142bn in assets, with software accounting for approximately 14% of its fee-related assets under management in private capital. The firm highlighted strong performance across its technology portfolio, with mid-teens revenue growth and operating profit increases of 20–30% last year, driven by holdings such as industrial software group IFS.
