Private equity firms are reassessing potential acquisitions of financial data companies as AI disruption fears intensify. Thoma Bravo and Hellman & Friedman recently explored acquiring FactSet after its shares dropped 39% over six months, while Morningstar and Gartner also saw double-digit declines. The selloff deepened following Anthropic's latest Claude AI upgrade, which investors fear could replicate core services these firms provide.

Bankers report difficulty valuing these companies amid uncertainty about AI's impact on their business models. FactSet's enterprise-value-to-EBITDA ratio has fallen to 12 from 21 last August and 30 in 2022, while Morningstar and Gartner trade at ratios of 12.6 and 14.8 respectively. These firms once commanded premium valuations due to their predictable subscription revenues and strong profit margins.

Despite the downturn, Morningstar's CEO Kunal Kapoor told shareholders the company is "well placed to benefit from the growth of AI." The uncertainty reflects broader market challenges in predicting AI's long-term impact. As venture capitalist Jordan Jacobs noted, AI's rapid improvements make forecasting years ahead extremely difficult, creating what analysts call an "AI discount" for software and data providers.