PE News & Analysis
4 articles
Market Mood
Schroders Capital CIO Discusses AI Impact on Returns, Not Headcounts
Schroders Capital, managing $112 billion AUM, asserts that AI's value in private equity (PE) lies in enhancing returns rather than reducing costs. Their May white paper highlights that about 25% of buyout deals achieve a gross IRR above 50%, while 10% yield no return. The firm has created three proprietary AI tools to aid investment processes, potentially increasing analytical efficiency by 100 times. Nils Rode, CIO, emphasizes that avoiding poor investments can significantly impact fund performance, outweighing benefits from cost-cutting measures in the sector.
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UK PE exit value reaches £20.9 billion across 131 transactions
In the first four months of 2026, the UK private equity (PE) exit value reached £20.9 billion (around $28 billion) across 131 transactions, reflecting a significant increase compared to the previous year's total of 388 deals. Sponsor acquisitions accounted for 62% of these exits, up from 39.2% in 2023. While the IPO market remains inactive, reforms to UK listing rules and cuts to UK interest rates by the Bank of England serve to enhance market conditions. This trend indicates a possible recovery in public listings despite prior market uncertainties.
Read More: UK PE exit value reaches £20.9 billion across 131 transactions
Software (Software) Sees Loan Market Share Drop to 9% in 2026
In 2026, software companies contributed only 9% of loans issued in the US broadly syndicated loan market, halving from the 2025 level. Within the PE-backed universe, this share also declined from 21% in 2025 and a peak of 24% in 2020. The share of software in LBO financing dropped to 17.5%, marking a decade-low. Factors such as decreased capital available for technology transactions and subdued M&A activity are influencing this downturn in the sector.
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Oil Prices Surpass $94 per Barrel amid Family Office Investment
Oil prices have risen to over $94 a barrel, representing a 30% increase since the onset of the Iran war in late February. As private equity firms retreat from the oil and gas sector, family offices have capitalized on this opportunity, investing despite growing ESG pressure. Investment multiples in the sector typically range from two to three times cash flow. Notably, family offices have led significant investments, including a $2 billion acquisition of PureWest Energy and a $500 million minerals fund focused on the Permian Basin, which is a major oil-producing region.
Read More: Oil Prices Surpass $94 per Barrel amid Family Office Investment