April 9 (Reuters) – Private equity firm Carlyle’s flagship private-credit interval fund is the latest to be hit with a wave of share-redemption requests, the Wall Street Journal reported on Thursday, citing a shareholder letter.
A spate of credit issues in recent months has intensified scrutiny of the multi-trillion-dollar private credit market, as investors question the health of loan portfolios and borrowers’ ability to withstand higher interest rates.
The Carlyle Tactical Private Credit Fund, or CTAC, received repurchase requests amounting to roughly 15.7% of outstanding shares, the report said, as an investor exodus over worries of a looming meltdown in the private credit sector continues.
In its shareholder letter, Carlyle underscored the fund’s diversification and relatively small individual positions as risk mitigators to the portfolio, the Journal’s report said.
Concerns that AI could erode software companies’ earnings and weaken their ability to repay loans are spreading through private credit – a key lender to the technology sector – prompting investors to reassess exposure, redemption risks and fundraising prospects, analysts said.
(Reporting by Manya Saini in Bengaluru; Editing by Shinjini Ganguli)
