Private equity software specialists Thoma Bravo and Vista Equity Partners are working to reassure fund investors about the health of their portfolios. This follows anxiety over potential artificial intelligence disruptions, which triggered a broad equity sell-off last week.
Thoma Bravo executives have been addressing queries and engaging in conversations with investors to discuss the potential impact of AI on their software portfolios. Sources indicate the firm intends to send a formal letter, expressing confidence in their portfolio’s resilience. Thoma Bravo manages over $US181 billion in assets and holds more than 75 portfolio companies across its various funds.
Vista Equity’s chief executive, Robert Smith, sent an email to clients and plans to hold a webinar on February 19. The webinar aims to discuss the current state of the firm’s portfolio. According to the letter viewed by Bloomberg News, Smith stated, “We feel this volatility is being driven primarily by sentiment and uncertainty, not fundamental performance.” Vista manages more than $US100 billion and has more than 90 companies in its portfolio.
Smith noted that the vast majority of Vista’s portfolio companies are not experiencing significant client losses due to AI alternatives. He stated, “Put simply, we believe that AI will enhance software, not replace it.” Representatives for both Thoma Bravo and Vista Equity declined to comment further.
