Victoria Ivashina

Private credit got even bigger when cloud computing and AI and data centers all joined the party, and investors went absolutely nuts for all of that.

The size of private credit more than tripled over the last few years.

So why are we now hearing about investors wanting to take their money out?

Well, basically, with time, the warts on some of these investments are beginning to show, says Ivashina.

And sure enough, as time went on, there were defaults.

And one of private credit's favorite darling software services got a big scare that AI might undermine it.

So some investors got queasy.

They wanted to take their chips home early.

And some private credit firms have let them do it up to a point.

But the vast majority of private credit firms do not allow that.

And the vast majority of investors, especially the institutional mega investors, don't want out anyway just yet.

In New York, I'm Sabri Beneshour for Marketplace.