The funds are reportedly tied to some of the sector’s biggest names, including Apollo Global Management, Ares Management, Blackstone, Blue Owl Capital and KKR. Investor concerns are being fuelled in part by fears that AI’s rapid development could undermine the outlook for private-equity backed software companies. (Financial Times, The Logic)

Talking point: Some funds have continued to honour withdrawals even after surpassing the 5 per cent threshold that would allow them to restrict outflows, while others have imposed limits. In Canada, market participants appear more optimistic. Michael Wissell, chief investment officer at the Healthcare of Ontario Pension Plan, said the fund remains cautiously optimistic on private credit despite lower returns last year. National Bank executive vice-president Étienne Dubuc previously said the bank has minimal exposure to private credit funds, while Bank of Montreal chief risk officer Piyush Agrawal said some of the concerns may be “overdone.” Meanwhile, OSFI superintendent Peter Routledge said he is “reasonably confident” the system can absorb the growth in private credit, even as Bank of Canada governor Tiff Macklem warned that risks may be growing faster than regulators’ ability to “understand and mitigate them.”

Sponsored Content

The road to risk-smart regulation

By Deborah Aarts

Why cybersecurity needs to match pace with AI

By Jessica Aftimus Rosa

How to shift your workforce from AI experimentation to adoption

By Jessica Aftimus Rosa

Paid promotional content