🔥 Software Crash Hits Private Equity Stocks Expert Warns: "The bedbugs of this credit cycle are about to emerge" On Tuesday, private equity giants sharply declined in value. The reason? A deep sell-off in software stocks is now beginning to spread into the financial system. 📉 Sharp Declines in Stocks Apollo ( $APO): -4.8% Blackstone ( $BX): -5.2% $KKR: -9.7% Ares Management ( $ARES): -10.3% Software ETF ( $IGV): At its lowest level since April 2025 💥 "Software-Annihilation" Period Andreas Steno Larsen, CEO of Steno Research, says the software sector has long been an inflated bubble: "Software was the golden child of private equity and private credit markets. Now it's time for reckoning." 🧐 Main Problem: Software companies were seen as "unbreakable moats" Productive AI is directly threatening these business models Corporate software spending is slowing down Valuations have started to collapse ⚠️ The Real Danger: Private Credit Software accounted for 25% of private equity acquisitions in recent years These companies were largely financed through private credit Now, as profits and valuations fall, credit portfolios are at risk Larsen's warning is clear: "Lenders have serious 'bags' on their balance sheets. The bedbugs of this credit cycle will likely emerge here." ("Bedbug" = hidden problems in the system that surface during a crisis) 🧠 Striking Analogy According to Larsen, today: Apollo stock is almost the same trade as Bitcoin Both are playing on a "shadow money system" and abundant liquidity In other words: When liquidity is present, they soar When liquidity is withdrawn, they fall sharply with high beta 🧾 Overall Assessment What does this mean? The software crash is not limited to technology There is a risk of spreading to private equity and private credit markets One of the most severe market rotations is happening in 2026: ❌ Software / growth ✅ Energy / real assets / cash flow 📌 Summary: As the software bubble bursts, serious problems may surface in the private credit world, which financed this bubble. The real crisis may not yet be fully visible. Source: finviz