economy
February 9, 2026
Private credit worries resurface in $3 trillion market as AI pressures software firms
Artificial intelligence is adding a new layer of uncertainty to the private credit industry, raising concerns that some lenders may face rising defaults.
TL;DR
- Artificial intelligence firm Anthropic's new AI tools are pressuring software companies, a major borrower group for private credit lenders.
- This has led to a sell-off in software data provider shares and a drop in the stock prices of asset managers with large private credit franchises.
- Software companies represent a significant share of loans held by U.S. business development companies, and AI disruption could accelerate default rates.
- Analysts warn that AI could weaken traditional software business models, pressure cash flows, and increase default risks in the private credit market.
- Concerns about AI's impact are layered on top of existing issues in private credit, such as leverage, opaque valuations, and liquidity problems.
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