US private capital giants Ares, Blue Owl, and KKR all saw their shares fall this week as investor concerns over AI-driven disruption weighed on fundraising and asset sales prospects for 2026, according to a report by the Financial Times.
Investors have reacted to heightened volatility in technology markets, concerned that AI could undermine software businesses – a key area of exposure for private credit and buyout funds.
The share price impact was sharp, with Ares falling 11%, KKR down 5.5%, and Blue Owl losing 3.8%.
On earnings calls, KKR and Blue Owl flagged potential delays in asset sales and fundraising that could limit cash flow and slow fee growth. KKR CFO Robert Lewin noted that a weaker market environment might push some monetisation into future years, while Blue Owl CFO Alan Kirshenbaum highlighted that rising redemptions could temper fee growth, projecting only “modest” increases for 2026 compared with roughly 20% growth last year.
Despite the cautious outlook, executives stressed resilience. KKR co-CEO Scott Nuttall said the firm had prepared for AI-related disruption for years, identifying and exiting vulnerable positions, while Blue Owl CEO Marc Lipschultz dismissed fears of mass software defaults as “ridiculous.” Ares CEO Mike Arougheti noted software accounted for just 9% of the firm’s private credit AUM, with non-performing loans near zero.
The firms reported strong asset growth in Q4. Ares attracted a record $34.4bn, lifting AUM to $623bn. KKR’s fee-based earnings rose 15% as assets reached $744bn, while Blue Owl reported $12bn of new commitments and total AUM of $307bn, even amid market volatility.
