Private market managers took a hit this week with KKR ending down almost 10% and Ares dropping nearly 13%. The selloff seems linked to the drop in software stocks, which some are calling a 'SaaSpocalypse' driven by AI fears. It's bad timing since these firms are currently at a conference in Cannes trying to pitch private funds to wealthy individuals. Executives are arguing that the public markets are wrong and ignoring fundamentals. KKR specifically noted their software exposure is only about 7%. Critics like Josh Harris are warning that pushing these illiquid funds to retail investors is risky. The main concern is that regular investors might not understand they can't just pull their money out whenever they want, which becomes a problem if the market turns. BlackRock also paused plans for a new infrastructure fund amidst the volatility.