Key Takeaways
- • Private equity software investors at Clearlake, FTV, Riverside and Thoma Bravo are outlining how they are positioning portfolios as AI disrupts the software sector, according to PEI Private Equity.
- • Thoma Bravo's Tara Gadgil told PE Hub that the winners will be companies with 'deep domain expertise and franchises that are deeply trusted by their enterprise customers.'
- • The discussion centers on identifying which software businesses can withstand AI-driven competitive pressure while retaining durable enterprise relationships.
Summary
Private equity firms Clearlake, FTV, Riverside and Thoma Bravo have shared their strategies for investing in software as artificial intelligence reshapes the sector, according to a PEI Private Equity report by Rafael Canton. The article, published in May 2026, frames the question of how sponsors should underwrite software assets at a time when AI tools are changing competitive dynamics across enterprise software categories.
Thoma Bravo's Tara Gadgil told PE Hub that the firms most likely to win are those with 'deep domain expertise and franchises that are deeply trusted by their enterprise customers.' That emphasis on vertical depth and customer trust reflects a broader view among the participating managers that generic software functionality is more exposed to disruption than embedded, mission-critical platforms.
The piece draws on the perspectives of multiple large software-focused sponsors, providing a comparative view of how these managers are approaching sourcing and portfolio construction in the current environment. Readers seeking the full set of firm-specific tactics and figures should refer to the original PEI Private Equity article.
Thoma Bravo's Tara Gadgil told PE Hub that the firms most likely to win are those with 'deep domain expertise and franchises that are deeply trusted by their enterprise customers.' That emphasis on vertical depth and customer trust reflects a broader view among the participating managers that generic software functionality is more exposed to disruption than embedded, mission-critical platforms.
The piece draws on the perspectives of multiple large software-focused sponsors, providing a comparative view of how these managers are approaching sourcing and portfolio construction in the current environment. Readers seeking the full set of firm-specific tactics and figures should refer to the original PEI Private Equity article.
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