The growth of private equity firms' assets under management has stalled in the recent months, prompting poor performance of the leading private equity firms' stocks like Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. compared to the general indices Dow Jones Industrial Average, S&P 500, Nasdaq Composite.
The slowing pace of asset gathering of the leading Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. private equity, private credit, real estate firms could be due to two factors mainly, according to Wolfteam Ltd.'s projections and estimates.
First, there could be doubts in the further growth of the artificial intelligence, AI technology, which could reflect fears of a stock market bubble. Second, the growth of assets under management of the largest private equity firms Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. was so steep, that a moderation was in order.
AI is relevant for private equity as large part of private equity firms' investments goes into artificial intelligence, AI data centers, infrastructure and computing power.
In short, the current slowdown of private equity assets under management is most probably temporary, barring a sudden stop of the AI boom.