--- title: Too SaaSy on the Marks description: Apollo warns private equity’s software valuations may be overstated, as AI disruption exposes overly optimistic assumptions and downside risks. image: https://community.ipem-market.com/hubfs/IPEM_Community_header-weekly-spin_full.jpg --- ## [![logo_IPEM-community_orange-1](https://community.ipem-market.com/hubfs/logo_IPEM-community_orange-1.svg "logo_IPEM-community_orange-1")](https://community.ipem-market.com/) [Follow us on LinkedIn ](https://www.linkedin.com/company/ipem_privateequity) [Follow us on Youtube ](https://www.youtube.com/@ipem?themeRefresh=1) [More information ](https://www.ipem-market.com/) [✕](https://community.ipem-market.com/too-saasy-on-the-marks#atbs-offcanvas-primary) [** ](https://community.ipem-market.com/too-saasy-on-the-marks#) Share - ![Weekly spin meme march 17](https://community.ipem-market.com/hs-fs/hubfs/IPEM%20Community/Weekly%20Spin/Weekly%20spin%20meme%20march%2017.gif?width=900&height=900&name=Weekly%20spin%20meme%20march%2017.gif) ## Too SaaSy on the Marks Apollo warns private equity’s software valuations may be overstated, as AI disruption exposes overly optimistic assumptions and downside risks. Private equity has yet to properly mark its software assets—are valuations getting too Saasy? Last month, Apollo’s John Zito told UBS clients that he believes “all the marks are wrong.” According to Zito, many of these investments were underwritten on assumptions that no longer hold, including high growth rates, durable margins, and pricing power that may now be disrupted by AI and a rapidly shifting competitive environment. In downside scenarios, recoveries could fall to as low as 20–40 cents on the dollar, with 2018–2022 vintage assets particularly at risk if they find themselves on the wrong side of the AI revolution. Apollo’s credit business has limited exposure to software—less than 2% of total AUM—and no exposure to PE sponsor-backed companies. Zito’s comments highlight a broader concern about how private equity has historically priced software, often reflecting optimism rather than underlying credit or operational realities. By questioning the reliability of these marks, he is effectively calling out the risks hidden beneath glossy metrics like ARR and recurring revenue, and the potential for leveraged investments to underperform if assumptions prove too aggressive. High marks were easy to hand out. The hard math is just arriving. Schedule a call KNOW MORE Schedule a call [Inspired by CNBC ](https://www.cnbc.com/2026/03/16/apollo-john-zito-private-equity-software-valuations.html) ### Subscribe to the IPEM Newsletter!   ![James Williams](https://community.ipem-market.com/hs-fs/hubfs/1744544007605.jpeg?width=180&height=180&name=1744544007605.jpeg) [James Williams](https://community.ipem-market.com/author/james-williams) James is an experienced financial journalist and editor with over 20 years experience covering private markets and alternatives. He is host of the Clockwork CIO podcast. - [**](https://www.linkedin.com/in/james-williams-8074151b/) [Previous ](https://community.ipem-market.com/private-markets-for-everyone-the-evergreen-solution) ### [Private Markets for Everyone: The Evergreen Solution](https://community.ipem-market.com/private-markets-for-everyone-the-evergreen-solution) [Next ](https://community.ipem-market.com/private-equitys-new-reality-select-hard-think-long) ### [Private Equity's New Reality: Select Hard, Think Long](https://community.ipem-market.com/private-equitys-new-reality-select-hard-think-long) #### RELATED NEWS [![image](https://community.ipem-market.com/hubfs/Weekly%20spin%20march%2010.gif)](https://community.ipem-market.com/jeff-soar-eyes-big-four) [Weekly Spin](https://community.ipem-market.com/tag/weekly-spin) ### [Jeff Soar Eyes Big Four](https://community.ipem-market.com/jeff-soar-eyes-big-four) Swedish private equity group EQT is backing a new UK tax business to disrupt the Big Four and... 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By [James Williams](https://community.ipem-market.com/author/james-williams) May 19 2026 ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "James Williams", "url" : "https://community.ipem-market.com/author/james-williams" }, "dateModified" : "2026-03-17T13:21:16.922Z", "datePublished" : "2026-03-17T13:21:16.000Z", "headline" : "Too SaaSy on the Marks", "image" : [ "https://community.ipem-market.com/hubfs/IPEM_Community_header-weekly-spin_full.jpg" ], "mainEntityOfPage" : { "@id" : "https://community.ipem-market.com/too-saasy-on-the-marks", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://community.ipem-market.com/hubfs/IPEM%20Brand%20Identity/logo_IPEM_classique-orange.svg" }, "name" : "EUROPEXPO (IPEM)" } } ```