S&P Global | Software Debt Sell-off Signals Cyclical Turn for Private Equity and Credit
Originally published by S&P Global on March 24, 2026.
Some buyers and lenders are facing losses as the post-pandemic software boom has fallen into a cyclical downturn. Rising interest rates and declining software growth rates have exposed private equity and private credit investors to potential losses, especially those who purchased assets in 2021 and 2022. Compounding the problem, stress in software credit may make it more difficult for private equity to refinance existing debt or finance new transactions.
Still, bright spots exist in the software industry for private credit and private equity sponsors. Scott Twibell, Managing Director and Co-Head of Technology, shared his insights with S&P Global.
“Software deals on the smaller size—sub $500 million—are having an easier time to access private credit markets,” Scott said.
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Scott Twibell
Managing Director & Global Co-Head, Technology
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