Software Valuations

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When JPMorgan Chase quietly marked down the collateral value of software loans held by private credit funds, most headlines framed it as a credit-risk story. In reality, the move may signal something much larger for enterprise software markets. By reducing the leverage available to private credit firms that finance PE-backed SaaS companies, the bank may have triggered a cascading effect that pressures valuations, accelerates exits, and reshapes the economics of SaaS M&A.

For investors, founders, and acquirers, this development could mark the beginning of a new bifurcation in software dealmaking: AI-defensible platforms retaining strong valuations while single-function SaaS tools face deeper multiple compression.