Benzinga
22 May 2026, 19:38 UTC · 3d ago
Source · https://www.benzinga.com/markets/private-markets/26/05/52756329/jeffrey-gundlach-says-private-credits-troubled-assets-trade-is-full-of-contradictions
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Steve Eisman claims that every private equity deal involving software companies between 2018 and 2022 is now underwater. — A systemic valuation collapse across a massive tranche of PE software investments suggests significant write-downs and contagion risk for private equity funds.
-0.80Private credit funds are seeing rising loan defaults, with KKR's Future Standard strategy reporting a $560 million loss in Q1. — Direct evidence of mounting losses in high-profile private credit strategies signals deteriorating credit quality in the shadow banking sector.
-0.60Apollo is considering the sale of its $3 billion MidCap Financial Investment (MFIC) fund amid a rising default rate of 5.3%. — The potential divestiture of a major BDC due to increasing defaults reflects stress in mid-market corporate lending.
-0.40Jeffrey Gundlach questions the viability of the 'troubled assets' trade in private credit, suggesting it may be a reshuffling of risk rather than finding bargains. — Casting doubt on the ability of managers to successfully navigate distressed debt reduces confidence in the recovery of private credit portfolios.
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The fund's default rate has climbed to 5.3% and its shares are trading well below net asset value.
The company's private credit strategy is facing pressure from rising loan defaults, leading to a $560 million first-quarter loss.
The company is considering the sale of its MFIC fund, which has seen rising default rates.
