Blackstone(US:BX) Reuters·2026-02-13 11:11Core Viewpoint - Executives from major private capital firms, including Apollo, Blackstone, and Ares, are struggling to reassure investors about the safety of their portfolios amid a selloff in the software sector driven by fears of AI disruption [1] Group 1: Impact of AI on Alternative Asset Managers - Concerns about AI's impact on software companies have negatively affected the stock prices of alternative asset managers, despite significant new client investments and a resurgence in mergers and acquisitions [1] - Executives have defended their portfolios, stating that they are well-constructed to withstand AI-related risks, with Ares reporting only 6% of its assets in software, which is highly diversified [1] - Apollo's CEO indicated that software accounts for less than 2% of its assets under management, with minimal exposure in private equity and insurance portfolios [1] Group 2: Stock Performance and Market Reactions - Despite some recovery in stock prices following earnings reports, shares of these firms remain down approximately 30% over the last six months [1] - KKR has about 7% of its portfolio in software, with its shares down 29% over the same period, while Blue Owl reported 8% exposure and a 36% decline in share price [1] - Blackstone's shares have decreased by 24% over the last six months, with software comprising 7% of its total assets and 10% of its credit holdings [1] Group 3: Executive Insights and Future Outlook - Executives from these firms express confidence in their portfolios, with Blue Owl's co-CEO stating they do not foresee meaningful losses or performance deterioration [1] - KKR's co-CEO mentioned that the firm has identified AI as both an opportunity and a risk, with $118 billion in dry powder available for investment [1] - Analysts suggest that the narrative surrounding alternative asset managers has shifted, with concerns about their role in AI financing and potential losses due to AI's transformative impact [1]