Private capital firms like Apollo, Ares, Blackstone, and KKR are struggling to assure investors that their portfolios are safe from the impact of a software sector selloff due to fears of artificial intelligence. Despite billions of new client money, shares are down 30% in the last six months.

Executives are defending their portfolios, with Ares stating that only 6% of its assets are in software companies. Apollo’s exposure to software is minimal, with less than 2% of assets under management. Blue Owl has 8% of its portfolio in software, with shares down over 36% in the last six months.

KKR and Apollo executives see opportunities in the volatility, with KKR having $118 billion in dry powder to mitigate AI-related risks. Blackstone, the world’s largest alternative asset manager, is also affected by the selloff, with software making up 7% of its total assets. Analysts are concerned about the impact of AI on alternative asset managers, with T. Rowe Price stating the narrative has flipped but the outcome remains uncertain.

Read more at Yahoo Finance: Apollo, Blackstone execs offer reassurance as software sell-off hits their stocks too