Apollo Global Management, Ares, Blackstone, and Blue Owl hold more software exposure than reported. These funds classify an average of 19% of investments as software. The actual exposure is approximately 25%.
Discrepancies arise from categorizing software firms under the industries they serve, such as healthcare. Non-uniform classification methods prevent investors from accurately assessing diversification and risk across different funds.
Investors fear the software sector is vulnerable to AI disruption and high debt levels. These concerns contributed to record withdrawals from private credit funds in Q1 2026.