Gemini · Claude · ChatGPT · Axios
Private equity is a long-term asset class, typically holding portfolio companies for a minimum of three or four years
Compiled by KHAO Editorial — aggregated from 1 outlet + 5 references discovered via search. See llms.txt for citation guidance.
◌ Single Source
"Modeling exit multiples has always involved a lot of guesswork, but now it feels like throwing at a dartboard blindfolded," said one private equity veteran.
Key facts
- It's no secret that AI has become a splitting headache for private equity, or at least for funds that bought big into enterprise software
- Private equity has plenty of dry powder, with limited partners continuing to invest despite the DPI drought
- Private equity is a long-term asset class, typically holding portfolio companies for a minimum of three or four years
- Modeling exit multiples has always involved a lot of guesswork, but now it feels like throwing at a dartboard blindfolded," said one private equity veteran
Summary
It's no secret that AI has become a splitting headache for private equity, or at least for funds that bought big into enterprise software. But this isn't a backward-looking problem, which can be temporarily stemmed by Q1 equity markdowns and maturing debt renegotiations. Almost every industry big that spoke to Axios at the Milken Global Conference this week said that AI has created massive modeling challenges for new deals, almost regardless of sector. Private equity is a long-term asset class, typically holding portfolio companies for a minimum of three or four years. For context, it's been only three-and-a-half years since ChatGPT was first released.