The Liquidity Illusion | AI, Software, and the New Selectivity in Private Credit
May 19
1 min read
Private credit’s shift into semi-liquid structures exposed a fundamental mismatch between investor liquidity expectations and the inherently illiquid nature of private loans. That tension surfaced as funds faced roughly US$20 billion in redemption requests, forcing managers to rely on gates, caps, and deferrals to manage outflows.
In this paper, we examine the mechanics of fund gating, the mounting pressure surrounding software lending, and the broader implications of a market entering a more selective era for private credit.
