Apollo: The private equity industry will face a prolonged period of software investment growing pains

David Sambur, co-head of private equity at Apollo Global Management Inc., believes that acquiring companies are on the brink of a major reckoning in the software industry, as they previously failed to recognize that technologies like artificial intelligence (AI) would completely disrupt the software sector. "Only now are people starting to pay attention to the impending 'multi-car pileup' on the software investment highway... If you were willing to open your eyes in 2022, the signs of this were already beginning to emerge." As investors reassess the economic models and future growth rates of software companies, the industry needs to prepare for an "imminent valuation reset." (Bloomberg)