Private equity interest in the accounting sector remains high, exemplified by the merger between TowerBrook-backed EisnerAmper and KLB Business Valuators & Forensic Accountants. Carlyle’s Jim F Burr discussed the drivers attracting capital to professional services firms amid this M&A activity. Investors are clearly seeking stability and steady fee streams in specialized sectors.

Simultaneously, investors are grappling with the disruptive potential of artificial intelligence across the technology space. Zak Ewen of Battery Ventures shared insights on which software businesses possess the inherent resilience needed to withstand widespread disintermediation from AI tools. This contrasts with recent sector sell-offs driven by AI uncertainty.

Ewen’s analysis provides a framework for assessing durable technology assets, moving beyond surface-level rallies seen in the broader software market. For private equity professionals, identifying these defensible tech niches offers a way to deploy capital away from areas facing immediate technological obsolescence.

These concurrent trends illustrate a market searching for both reliable returns in services and durable growth engines within technology, a careful balancing act for dealmakers assessing future value creation.