Private equity firm H.I.G. Capital is pivoting toward middle-market hard assets as the software sector cools, according to Berman. The investment strategy shift reflects broader market dynamics where traditional industrial and infrastructure assets are gaining favor over high-growth technology investments.

The move signals a strategic realignment for H.I.G., which has historically balanced software investments with other sectors. As software valuations face pressure from rising interest rates and market uncertainty, the firm sees opportunity in more stable, cash-flow generating hard assets. This approach aligns with similar trends across private equity.

Berman's observation that the market is "splitting in two" suggests a growing divide between high-growth technology investments and more traditional industrial assets. For investors, this strategy shift highlights the importance of diversification across different asset classes during periods of market volatility. The pivot underscores how macroeconomic conditions are reshaping investment priorities across the private equity landscape.