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Private Equity Faces Losses Amid Software Valuation Crisis

3/17/2026

Summary

Story summary

John Zito, co-president of Apollo's asset management division, criticized private equity firms for misvaluing software holdings amid declining public tech shares.
He warned UBS clients that lenders could face significant losses for software companies acquired between 2018 and 2022, estimating recovery for loans to smaller firms at 20 to 40 cents on the dollar.
Despite these challenges, Zito believes the broader asset class will endure, noting that software investments represent less than 2% of Apollo's assets with no exposure to private equity stakes in software firms.

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Story summary

John Zito, co-president of Apollo's asset management division, criticized private equity firms for misvaluing software holdings amid declining public tech shares.
He warned UBS clients that lenders could face significant losses for software companies acquired between 2018 and 2022, estimating recovery for loans to smaller firms at 20 to 40 cents on the dollar.
Despite these challenges, Zito believes the broader asset class will endure, noting that software investments represent less than 2% of Apollo's assets with no exposure to private equity stakes in software firms.