PE Firm Hg Marks Down Fund Value by 9% After Software’s Plunge

Private equity firm Hg marked down the portfolio value of one of its funds by 9% in the first quarter after software valuations fell to a 20-year low, highlighting concerns that artificial intelligence will deal a huge blow to the industry.

The hit to HgCapital Trust was partially offset by a positive contribution of 5% from trading, the fund manager said in a statement. The trust, which trades at a 30% discount to its net asset value, gives investors access to some of the largest privately-held tech companies in Europe including software firms IFS and Visma.