Thrive Holdings, backed by Josh Kushner, is acquiring home alarm network ADT for $15bn, including debt. This deal highlights a generational shift in private equity, as new AI-driven firms challenge traditional buyout shops. ADT was previously owned by Apollo, which acquired it for the same amount in 2016 and achieved only modest returns.
Thrive, an offshoot of Thrive Capital and supported by OpenAI, aims to leverage artificial intelligence for customer engagement and operational efficiency. Traditional PE firms like Apollo are pivoting to corporate lending, collecting steady interest with less risk. Meanwhile, AI-centric investors like Long Lake and Aldaron are raising large capital pools, betting on technology-driven transformation.
Apollo is providing the debt financing for the ADT deal, signaling its strategic shift away from buyouts toward credit markets.
Source: Financial Times Companies · Summarized by HeadlinesBriefing