Key Takeaways
- • Thoma Bravo, the private equity firm, is among the first large software investors to return to dealmaking after the so-called "SaaSpocalypse" selloff earlier in 2026, according to Semafor.
- • Thoma Bravo sold Command Alkon to Francisco Partners in August 2026, providing a realized exit from its software portfolio.
- • Thoma Bravo combined construction software company HCSS with the Build & Construct segment of Germany's Nemetschek Group, retaining a minority stake in the combined business.
- • Investors had fled software services companies on fears that agentic artificial intelligence could render them obsolete, hitting both public software shares and private software funds through losses and redemptions.
- • Investors have since concluded AI adoption has been slower than feared, and mission-critical software functions are proving harder to displace inside large corporate workflows.
Summary
According to Semafor, Thoma Bravo has found that the software sell-off earlier in 2026 has not shut down all deal activity. Investors pulled out of software services companies earlier this year over concern that agentic artificial intelligence, capable of writing bespoke programs, would make these businesses obsolete. The resulting "SaaSpocalypse" hit public software shares and investment firms that concentrated private investments in software, which suffered losses on their holdings and investor withdrawals.
After the initial panic, investors have come to recognize that enterprise AI adoption has been slow, and that some mission-critical functions remain difficult to displace within large corporate workflows. Talk of a slowdown in model development also appears to have extended the runway for legacy software providers, according to the report.
Thoma Bravo, which has navigated several prior market cycles, is described by Semafor as the first to pursue transactions in the post-panic market. The firm sold Command Alkon to Francisco Partners in August. It also combined construction software company HCSS with the Build & Construct segment of Germany's Nemetschek Group, retaining a minority stake in the combined entity.
The transactions suggest that selective buyers are willing to re-engage with software assets at current valuations, particularly where businesses serve mission-critical, workflow-embedded use cases. Limited partners and allocators monitoring private software exposure may view these deals as an early indicator of how exit markets are reopening.
After the initial panic, investors have come to recognize that enterprise AI adoption has been slow, and that some mission-critical functions remain difficult to displace within large corporate workflows. Talk of a slowdown in model development also appears to have extended the runway for legacy software providers, according to the report.
Thoma Bravo, which has navigated several prior market cycles, is described by Semafor as the first to pursue transactions in the post-panic market. The firm sold Command Alkon to Francisco Partners in August. It also combined construction software company HCSS with the Build & Construct segment of Germany's Nemetschek Group, retaining a minority stake in the combined entity.
The transactions suggest that selective buyers are willing to re-engage with software assets at current valuations, particularly where businesses serve mission-critical, workflow-embedded use cases. Limited partners and allocators monitoring private software exposure may view these deals as an early indicator of how exit markets are reopening.
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