AI continues to bolster tech and capex; earnings growth broadening to sectors outside AI like financials and healthcare; private equity benefits from broadening.
Asks if capex announcements will be viewed differently this year needing ROI proof.
Vonnie Quinn
Sitara Sundar
Moving to period where ROI needs to be seen; AI-forward companies growing revenues 1.7x faster; profitability critical for adoption.
Asks why private equity turnaround is happening now.
Vonnie Quinn
Sitara Sundar
IPO and M&A activity increasing due to sentiment and easing financial conditions; median private company earnings growth 11.5% over decade.
Asks which private equity themes will do well.
Vonnie Quinn
Sitara Sundar
Three buckets: AI application layer (95% software private), healthcare innovation (70% via M&A), and security themes (energy transition, defense).
Asks about trust and carefulness in private equity markets.
Vonnie Quinn
Sitara Sundar
Industry stratifying; post-GFC returns from multiple expansion/leverage; now need operational improvement via AI in higher rate environment.