Permira is moving to acquire discounted software loans, as the private equity firm looks to capitalise on market dislocation driven by concerns over artificial intelligence disruption, according to sources cited by Bloomberg.

The firm is focusing on broadly syndicated loans in European secondary markets, with potential expansion into the US, targeting software companies with resilient products and strong market positioning.

Permira believes the sell-off in technology debt has been overdone, creating opportunities to acquire assets at attractive valuations despite broader market volatility.

“The market has overreacted,” said Ian Jackson, head of strategic opportunities at Permira Credit. “A lot of these names, we just don’t believe will go through restructuring,” he told Bloomberg.

Leveraged debt in the technology sector has declined sharply, reflecting investor concerns that AI could disrupt software business models and reduce long-term earnings visibility.

However, Permira is selectively targeting companies whose products are embedded in critical workflows, provide essential data, or enhance business resilience.

The firm is also monitoring broader credit market risks, including the impact of geopolitical tensions and a rising number of bankruptcies, which have contributed to tighter lending conditions.

Permira has responded by strengthening underwriting standards, reflecting a more cautious approach to risk in the current environment.

“The current situation is obviously serious, but I wouldn’t say today it’s a full blown crisis,” Jackson said. “Private credit is still very attractive in parts — it’s a little less forgiving today because the easy money years have gone.”