Rowan says institutional money is flowing in and will normalize spreads except for software facing AI disruption.
“Money is coming in institutionally, and it is going to result in reasonably normal spreads for the except with the exception of software, which has nothing to do with public or private.”
Rowan criticizes managers who only recently realized AI threatens enterprise software, calling it foreseeable.
“If you discovered eight weeks ago that enterprise software was vulnerable to AI, you kind of weren't doing your job. This is this is knowable, and we're we're seeing, this technology shift”
Rowan says the real story is private equity's 30% concentration in enterprise software during an AI-driven technology shift.
“we're seeing, this technology shift take place at a point in time when the private equity industry spent a decade where 30% of their activity was enterprise software. That to me is the story.”
Rowan argues enterprise software losses are about sector concentration and AI disruption, not public versus private structure.
“Because if you're public and you are concentrated in enterprise software, the stocks are down 6070%.”