In 2021, a private equity firm called Thoma Bravo bought a SaaS company called Medallia for $6.4 billion. Solid business. Predictable cash flows. The exact kind of safe software bet that PE firms have been making for two decades.

A few weeks ago.. they walked away from it.

Wrote off $5.1 billion in equity. Handed the keys back to the creditors. Said.. it's yours now, good luck.

Five point one billion dollars. Just gone.

And the strange part is.. The same week this was happening, the S&P 500 hit an all-time high. The fastest V-shaped recovery on record.