Private equity investors are shifting their focus away from traditional software deals and toward infrastructure-focused investments as artificial intelligence reshapes the market.
PitchBook says the next opportunity for private equity may come from what it calls HALO assets — "heavy asset, low obsolescence" companies with durable demand drivers and lower risk of technological disruption.
The shift comes as private equity enters another uncertain period.
PitchBook analysts described 2026 as "another false start" for the industry, with early optimism disrupted by macroeconomic shocks, higher interest rates and growing concerns around AI’s impact on existing business models.
"While momentum has been halted, and optimism has started to fade, we do see pockets of strength as the industry begins to rotate and grapple with the new realities," Steven Buibish, director of U.S. private equity research at Pitchbook said during the midyear outlook webinar.
