MFS, Market Financial Solutions the UK bridging mortgage loans provider suddenly collapsed last month saddling private credit funds that had lent to it with more than 1 billion USDs in losses.
MFS creditors claim a 1.8 billion USDs shortfall in the assets of MFS, the collapsed UK mortgage lender.
After First Brands, Tricolor, MFS is the latest insolvency to hit the private equity, private credit, infrastructure, real estate asset management industry.
Last week BlackRock wrote off a private credit loan to 0 %, which just three months ago was carried at 100 % on BlackRock's books.
As long as the AI boom continues, the private credit industry is safe, according to Wolfteam Ltd.'s projections and estimates.
If the AI boom turns into bust, however, whereby the Nasdaq Composite falls 62 % from its most recent peak, the private credit could face solvency issues.
If the Nasdaq Composite falls 32 % from its most recent peak, the private credit will also face enormous difficulties.
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