Cliffwater limits redemptions from its Cliffwater Corporate Lending Fund.
This is the latest from a serious of troubles facing the private credit and private equity asset management business.
Investors are worrying that alternative asset managers have financed private equity leveraged buyouts of overvalued technology companies and have given out private credit loans to over leveraged mid sized AI technology firms.
On top of that artificial intelligence, AI could disrupt many software businesses.
If the AI boom does not turn out to a bust, the private equity and private credit industry should turn out OK.
If there is a AI bubble burst, similar to the Dot Com bust, the private equity and private credit industry will face serious difficulties.
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