OAKTREE CUTS SOFTWARE FUND VALUE BY 4%

The private credit firm reduced the value of one of its business development company funds by nearly 4%, reflecting broader pressures on software valuations in the current market environment. The markdown underscores ongoing challenges in the software sector, where companies face macro headwinds and investor scrutiny over path-to-profitability. Oaktree's move signals caution among major credit providers about software loan quality. The disclosure of 26% AI exposure highlights how concentrated bets on artificial intelligence have become across private credit portfolios. While AI represents significant opportunity, the high concentration reflects both investor enthusiasm and potential portfolio concentration risk. Oaktree manages substantial private credit assets and regularly adjusts valuations based on portfolio performance and market conditions. The fund markdown and AI exposure disclosure come as private credit markets face increased scrutiny over valuation practices and asset quality.