Zaid Admani

The Wall Street Journal did an analysis and they found that four of the largest private credit funds actually have way more software exposure than they've been reporting.

On average, the four funds reported about 19% of their investments were in software, but the journal found that the real number is closer to 25%.

Some of these funds were categorizing software companies under different industries like healthcare or business services to make their exposure look smaller.

So the risks might be even higher than initially reported.

Now, these private fund managers say that this panic is all overblown.

They say the loans are performing well and that the AI fears are creating unnecessary panic.

And look, I think they might be right, but the optics are terrible when investors are already nervous and heading for the exits.

And here's where it gets even crazier.

Despite all the recent turmoil, the Trump administration just proposed a new rule today that would make it easier to put private credit and private equity into your 401k.

See, right now, most 401k plans stick to regular stocks and bond funds.

But Wall Street firms have been pushing the administration to allow more alternative assets like private credit to be investable via 401k.

You know, there are over $14 trillion locked up in 401ks.

That's a massive pool of money that these Wall Street firms want access to.

Like personally, that seems very risky to invest in a private equity or a private credit fund using your retirement money.

But I don't know, let me know what you guys think in the comments.

Do you think that these private credit funds should be allowed in 401ks?

If you look at the stock price of these private credit companies like Blue Owl and Blackstone and Apollo, the stock is down like 30 to 40% this year.

So yeah, we're gonna continue to keep an eye on the private credit space.

Cause like I said, a lot of smoke there right now.

In return, Eli Lilly will get access to Insilico's AI model called pharma.ai, and they'll get exclusive worldwide rights to develop and commercialize potential medicines.