Goldman Sachs Private Credit Fund Outperforms Peers, Easing Concerns Over AI's Impact on Software

Private credit funds provide companies with non-bank financing, and software firms are a major borrower group. Markets have recently worried that generative AI could erode software companies' revenue and valuations, weakening their ability to repay debt. Fund flows at Goldman Sachs therefore offer an important gauge of whether industry risks are spreading.

Redemption requests received by Goldman Sachs' new private credit fund in the first quarter amounted to just 5% of its assets, avoiding the pressure seen across the industry as peers approached their quarterly redemption limits. The data did not disclose the fund's size, the value of the redemption requests or the exact date. Still, the figure indicates that AI-driven concerns about software credit have yet to affect the private credit market broadly.