Shares of major private-asset managers reached their peak in late 2024 or early 2025, but since then, the market has seen a pronounced correction—long before the recent wave of pessimism around artificial intelligence’s impact on software companies. While AI-related concerns have contributed to broader market volatility, the downturn in private-asset managers’ stocks was already underway and appears to be rooted in deeper structural shifts. These firms, which include large private equity and venture capital players, have historically benefited from strong performance in tech-driven investments, particularly in software. As both owners and lenders to software companies through their funds, they were closely tied to the sector’s boom. However, as valuations in tech and private markets began to cool, their stock prices started to fall—often more sharply than the broader market when measured over several years. Even without the added pressure from AI-related fears, the correction was likely inevitable. Rising interest rates, tighter credit conditions, and a slowdown in private market deal volume have all weighed on the performance of asset managers. Many of these firms rely on consistent fundraising and strong returns to maintain investor confidence and asset growth, both of which have been under strain. The recent sell-off in their shares reflects not just a reaction to AI disruption, but a broader reassessment of their long-term growth prospects. Unlike public tech companies, which may rebound quickly with new AI-powered products or services, private-asset managers face structural headwinds: declining deal flow, longer investment horizons, and increasing scrutiny over fees and performance. While the market may eventually temper its fears about AI’s threat to software companies, investors should not expect a swift recovery for private-asset managers. The correction appears to be a long-term adjustment rather than a temporary dip, driven by forces that predate the current AI hype cycle.