Private credit is showing the earliest signs of strain because it has the highest concentration of software exposure and because semi-liquid vehicles such as business development companies (BDCs) and evergreen funds make stress visible sooner through redemptions and write-downs. The broader market narrative has shifted from identifying the winners of AI to identifying those most exposed to AI disruption.

This is not only a private credit problem. It is as much a private equity issue as a private credit issue; private credit is simply where the pressure is surfacing first.

Read | Private Credit after the Software Reset

Geof Marshall

Geof Marshall, SVP, co-manages the CI Global Private Markets Funds in addition to leading the Fixed Income team at CI Global Asset Management. He has more than 20 years’ experience adjacent to the private markets, analyzing and managing corporate bonds, including private equity take-private financings, leverage loans and private credit.

Information provided is general information and is for educational purposes only, and does not include, or constitute as, financial product advice.