Most probably not.
The private credit industry's assets under management are around 2.5 trillion USD, most probably not big enough to bring down the banking sector which participated with loans along the private credit disbursed by Blackstone, Blackrock, KKR, TPG, Apollo, Carlyle, Ares, Blue Owl, EQT, Partners Group etc.
However, if the AI boom turns into a bust, in a worst case scenario around 1.2 trillion USDs of the private credit industry's assets under management could be wiped out, according to Wolfteam Ltd.'s projections and estimates. There is no data how much banks have lent along into private credit financed deals.
Such a shock could possibly rattle the global banking sector. And if to that is added the losses on regular bank loans to the technology sector, AI and software especially, a new credit crisis could unfold.
Bur these are too many interconnected events to simultaneously unfold for the time being.
AI continues its fourth industrial revolution, barring a bust followed by wide scale defaults.
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