Private Capital Turns to Old Economy as Software Trade Dims

Private capital firms are starting to swap software systems for hard hats as the artificial intelligence boom forces the industry into a quick rethink of its priorities.

The likes of Blackstone Inc., Bain Capital and Brookfield Asset Management Ltd. have all been talking of an increased focus on heavy assets with low obsolescence. This so-called HALO trade is targeting makers of everything from ship engines to conveyor belts that are considered less likely to be made extinct by AI.

“People are looking for terra firma,” Blackstone President Jonathan Gray said in an interview. “There is a lot of interest ...