Tech assets are losing appeal in the secondaries market as AI concerns shake buyer confidence. Continuation funds, which have aggressively pursued tech opportunities over the past five years, are now facing a sharp decline in interest for these assets. The shift marks a dramatic reversal from the sector's previous popularity among investors seeking exposure to technology companies.

This cooling trend reflects growing unease about AI-related risks and valuations. Buyers are reassessing their strategies as the market grapples with uncertainty around tech asset performance and future growth potential. The change in sentiment comes after years of strong demand that fueled a boom in continuation fund activity, particularly for technology-focused portfolios.

The disruption signals a broader reassessment of tech assets in secondary markets. Investors are becoming more selective as they navigate AI-related challenges and market volatility. This shift could reshape how continuation funds approach tech investments going forward, potentially leading to more conservative valuations and longer hold periods for these assets.