Private Credit Flows Falter Amid Defaults, AI Disruption Fears

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Private Credit:Private credit fund inflows in the first two month of this year dropped by more than a third as investors grew concerned about high-profile leveraged loan defaults and software disruption, according to Morningstar Direct. Open-ended private credit funds, which allow investors to cash out at periodic intervals and accept money on an ongoing basis, had around $1.1 billion inflows, which compares to $1.8 billion over the same period in 2025, Morningstar global data showed. Although there was a small uptick in February, the sector still attracted the lowest amount on a monthly basis since August 2024.