Goldman private credit redemptions stay below peer levels
Goldman Sachs reported a 3.5% redemption rate for its private credit arm. The firm maintains low software exposure as AI disruption risks impact the industry.
The Goldman Sachs Group, Inc. has reported that its private credit division is maintaining a redemption rate significantly lower than its industry peers, despite growing market concerns regarding the impact of artificial intelligence on the software sector. In a communication to investors, the firm noted that Goldman Sachs Private Credit Corp continues to attract strong interest, with December inflows rising 11% above the year-to-date average. The fourth-quarter redemption rate for the fund was 3.5%, compared to an average of over 5% for its competitors.
The broader private credit market, a major lender to the technology industry, is currently navigating fears that AI could diminish the earnings power of software companies and impair their ability to service debt. These anxieties have prompted a widespread reassessment of exposure and fundraising risks. The situation has been further complicated by recent difficulties at Blue Owl Capital Inc. regarding asset sales, which sparked a selloff in the shares of alternative asset managers.
