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Apollo Bets Against Software Firms on AI Fears
13 Dec, 2025
Summary
- Apollo Global Management bet against loans of software firms.
- Bets were driven by concerns over artificial intelligence impact.
- These short positions, under 1% of credit assets, have closed.
Apollo Global Management strategically bet against the loans of multiple software companies earlier this year, fueled by increasing apprehension regarding the disruptive potential of artificial intelligence on the tech sector. These bearish positions, which included firms like Internet Brands, SonicWall, and Perforce, constituted a minor fraction of Apollo's extensive credit portfolio.
The short positions, which were held for a considerable duration throughout the year, have now been fully closed. This financial maneuver highlights a cautious approach by Apollo amidst evolving technological landscapes and potential industry shifts.
Furthermore, Apollo's leadership has signaled an intention to decrease the firm's overall exposure to software within its credit funds to below 10% of net assets. This strategic adjustment comes as many funds began the year with roughly 20% in software exposure, indicating a significant recalibration of investment strategies.
