tech
March 12, 2026
Bosa/Wu: Private equity is about to eat its own software portfolio
Private equity built the SaaS installed base. It may also be the one that rips it out.
TL;DR
- A tie-up between AI and private equity could serve as a forcing function for enterprise software disruption.
- Anthropic is reportedly in talks with private equity firms like Blackstone for a joint venture to integrate AI into portfolio companies.
- This strategy could lead private equity firms to replace existing SaaS licenses with AI-driven solutions, potentially cannibalizing software companies owned by other PE firms.
- Horizontal SaaS tools for project management, CRM, analytics, HR, and finance workflows are particularly at risk.
- Private equity firms have the authority and incentive to rapidly implement AI cost-cutting measures across their portfolios.
- While some argue AI enhances enterprise software value, others see it as a disruptive force that could reduce the need for traditional SaaS products.
- Companies that shrink in the name of AI investment are being rewarded by Wall Street, indicating a shift in market preference.
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