At NEXUS 2026, private equity leaders gathered to discuss AI disruption, long hold periods, and the evolving industry landscape. Clearlake Capital co-founder José E. Feliciano outlined three categories of software companies facing AI disruption, identifying which are most vulnerable and which hold the greatest potential.

Feliciano explained that tool developers face the highest risk as AI enables smaller teams to perform work previously requiring larger workforces. Solution providers with established customer relationships and ecosystem connections are better positioned to survive, while AI-native companies creating new products from previously unusable data represent the most promising opportunities. Meanwhile, Hellman & Friedman CEO Patrick Healy defended the firm's long-hold strategy, noting that 40 percent of H&F's capital has been invested in companies for 10 or more years.

Healy cited the Kronos example, where H&F returned capital to investors in 2014 through a minority stake sale before the company later merged to form Ultimate Kronos Group, valued at $22 billion. The firm typically begins returning meaningful capital to limited partners in year four of fund life. As industry consolidation accelerates, Arctos Partners founder Ian Charles warned that up to 600 'zombie managers' could emerge annually, managing $1 trillion in net asset value by decade's end.