Private Credit Flows Falter Amid Defaults, AI Disruption Fears

Private credit fund inflows in the first two months of the year dropped by more than a third, according to Morningstar Direct. The pullback was driven by investor concerns about high-profile leveraged loan defaults and software disruption, increasing risk-off sentiment and likely slowing fundraising and deployment for private-credit managers.

Analysis

Private credit fund inflows in the first two months of the year dropped by more than a third, according to Morningstar Direct. The pullback was driven by investor concerns about high-profile leveraged loan defaults and software disruption, increasing risk-off sentiment and likely slowing fundraising and deployment for private-credit managers.