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SaaS secondaries saw a recovery in Q2, according to a report by Morgan Stanley's EquityZen.

Why it matters: SaaS secondary investors may be digging deep into the nuances of AI adoption by software companies.

By the numbers: In a reversal from Q1, 29% of secondaries are trading at a premium to their last funding round. In Q1, no SaaS companies traded at a premium.

The numbers are also in stark contrast to the public market. The S&P 500 software index is down 15% year-to-date as investors question whether older, legacy software firms can adapt to AI's changes.

Between the lines: The turn toward AI and physical infrastructure has caused a rotation away from traditional tech, leaving mature enterprise SaaS still trading at steep discounts.

What they're saying: "While (secondary) investors remain selective, software companies that have successfully navigated an AI-driven market and can prove their competitive moat are commanding premiums," per the report.

The bottom line: Software secondaries have been slowly staging a recovery, but it's selective.

Go deeper: IBM blames AI spending shift, but the market isn't buying it

IBM blames AI spending shift, but the market isn't buying it

Secondary investors look past SaaS selloff

SaaS secondaries saw a recovery in Q2, per a report by Morgan Stanley's EquityZen.

Illustration of a $100 US bill with a software UI frame and a large black computer cursor pointing at the bill.

SaaS secondaries saw a recovery in Q2, according to a <a class="gtmContentClick" data-vars-link-text="report" data-vars-click-url="https://blog.equityzen.com/private-market-investment-trends-q2-2026-equityzen" data-vars-content-id="9073a662-c26a-4342-81de-17dd96c63c65" data-vars-headline="Secondary investors look past SaaS selloff" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://blog.equityzen.com/private-market-investment-trends-q2-2026-equityzen" target="_blank">report</a> by Morgan Stanley&#x27;s EquityZen.Why it matters: SaaS secondary investors may be digging deep into the nuances of AI adoption by software companies.

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Secondary investors look past SaaS selloff

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