Three major private credit firms this week reassured investors about artificial intelligence threats to their software portfolio companies, using proprietary scorecards and external consultants to assess exposure.
The firms deployed risk assessment tools to evaluate how AI disruption could impact their lending positions in software businesses. The move signals growing investor concern about technology shifts that could affect borrower valuations and repayment capacity.
Private credit has expanded significantly in recent years, with software companies representing a substantial portion of leveraged loan portfolios. The firms' use of proprietary scorecards and outside expertise reflects an effort to quantify AI-related risks that have proven difficult to model.
The reassurance campaign comes as private credit managers face questions from limited partners about portfolio resilience amid rapid AI advancement. The approach suggests firms are taking a measured stance—neither dismissing AI threats nor suggesting fundamental business model problems for their software investments.
Detailed findings from the risk assessments were not disclosed, though the proactive communications indicate managers believe they have adequate frameworks to monitor and manage AI-related exposure across their software holdings.
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