Key Points
- Apollo executive John Zito said private equity firms are broadly misstating the value of their software holdings, telling UBS clients last month that “all the marks are wrong.”
- Zito warned that lenders to smaller software companies could recover as little as 20 to 40 cents on the dollar, implying deep losses.
- Apollo sought to distance itself from the damage, telling analysts that software companies represent less than 2% of the firm’s assets under management and that it has zero exposure to private equity stakes in software firms.
