Private equity activity is the lowest I've seen in my 45-year career: THL Partners' Scott Sperling

Summary

Scott Sperling, co-CEO of THL Partners, discusses the lowest private equity activity in 45 years, the impact of AI on dealmaking and valuations, and his favorable view on NVIDIA's valuation. He also highlights AI investments in healthcare and geopolitical risks from the Strait of Hormuz.

• Private equity activity is at the lowest level in 45 years, with both buying and selling difficult.
• AI is a major driver for deals, particularly in pharma services and semiconductor-related companies.
• NVIDIA's valuation is considered reasonable, especially on free cash flow.
• AI investments in healthcare, such as ambient note-taking, are already showing benefits.
• Geopolitical risks, especially the Strait of Hormuz, could have longer-lasting effects on inflation and valuations.
• Software companies that enjoyed premium multiples are facing a squeeze due to AI uncertainty.