Software Valuations Drop Over 10%, Signaling Pressure on Blackstone Private Funds
BX•U.S. mutual funds reduced software asset valuations by double-digit percentages in Q2, the largest markdown since early 2020. These downward revaluations highlight private markets value pressure that may weigh on Blackstone’s $1.5 trillion assets under management and fee revenues.
1. Mutual Funds Slash Software Valuations
In Q2, a broad group of U.S. mutual funds implemented double-digit markdowns on software holdings, marking the largest downturn since early 2020. Portfolio managers cited slowing enterprise tech spending and weaker IPO prospects as drivers of the valuation cuts.
2. Implications for Blackstone’s Private Markets
The widespread software markdowns signal broader valuation pressure across private markets, where Blackstone holds significant stakes. Lower asset values could compress the firm’s quarterly NAVs and reduce management and performance fees across its private equity and infrastructure strategies.
