Morgan Stanley(US:MS) Xin Lang Cai Jing·2026-02-04 15:58Core Viewpoint - Despite the recent stock decline of major alternative investment firms and business development companies (BDC), there are both risks and opportunities presented by artificial intelligence (AI) for portfolio companies [2][4]. Group 1: Investment Opportunities - The diversified nature of the investment portfolio may allow some investments to benefit from AI advancements [2][4]. - High-quality diversified alternative assets currently present a favorable entry point for investors [2][4]. Group 2: Market Insights - Since 2020, IT services have averaged about 23% of private equity (PE) transaction value and 16% of transaction volume across the industry, with the software sector being a subset [2][4]. - Among the companies covered by Morgan Stanley, technology service-related transactions account for approximately 21% of total PE transaction volume, with TPG, Carlyle, and KKR having slightly higher proportions, while Apollo Global Management has the lowest [2][4]. Group 3: Potential Winners - There may be significant winners within the portfolio that could benefit from AI, potentially accelerating growth and improving efficiency, with their gains possibly outweighing losses from poorer investments [2][4].