Permira is aggressively acquiring discounted software company loans as fears about AI disruption reshape credit markets, according to Bloomberg sources. The private equity firm is targeting broadly syndicated loans in European secondary markets, with potential expansion into the US, focusing on software firms with resilient products and strong market positioning. Permira believes the sell-off in technology debt has been overdone, creating attractive acquisition opportunities despite broader market volatility.

Ian Jackson, Permira's head of strategic opportunities, stated the market has overreacted to AI disruption concerns, arguing many software companies won't need restructuring. The firm is selectively targeting companies whose products are embedded in critical workflows or enhance business resilience, seeing value where others see panic. This strategy reflects a broader shift in credit markets where leveraged debt in tech has declined sharply due to investor fears about AI's impact on long-term earnings.

Permira is also monitoring wider credit risks, including geopolitical tensions and rising bankruptcies, which have tightened lending conditions. The firm has responded by strengthening underwriting standards, adopting a more cautious approach. Jackson emphasized that while the situation is serious, it's not a full-blown crisis, noting private credit remains attractive in parts despite the end of easy money years.