Companies including Apollo, Ares, Blackstone and KKR have told investors their exposure to software companies is limited and diversified, despite growing market concern that AI could reshape the sector, News.Az reports, citing Reuters.
The stock declines come even as alternative asset managers report strong fundraising, increased deal activity and improving merger and acquisition conditions, factors that would typically support share prices.
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Executives say software exposure in their portfolios is relatively small. Apollo said software represents less than 2% of assets under management, while Ares said about 6% of its total assets are tied to software companies. KKR and Blackstone also reported single-digit exposure levels.
Still, investor sentiment has remained cautious. Shares of several major alternative asset managers have fallen sharply over the past six months amid concerns about private credit risk and the potential for AI to disrupt traditional software business models.
Industry leaders acknowledge AI is a major technological risk but argue their portfolios are positioned to withstand disruption. Some firms also say market volatility is creating new investment opportunities.
