Private Credit Whitepaper: Looking beyond the noise

Private credit has grown rapidly since the global financial crisis, as asset managers increasingly replaced banks in corporate lending and investors chased higher returns. As the market has expanded, however, scrutiny has intensified around the sector’s lack of transparency and the possibility that problems in one area could spread more broadly through the financial system. Recent defaults across the software industry and wider private credit market have amplified these concerns.

In 2026, fast-moving advances in AI have threatened parts of the SaaS market, raising doubts about the value and resilience of some borrowers. Fears of inflated valuations and rising loan defaults have prompted investors to pull money from private credit funds, increasing concerns that the sector could face liquidity pressures if redemptions accelerate.

All of this and more was explored at a recent roundtable hosted by the cio investment club, where investment professionals discussed the evolving risks and opportunities shaping the future of private credit.