Artificial intelligence will trigger the biggest wave of defaults in private credit history as thousands of software companies fail to transform into AI-first businesses, warns Bruce Richards, CEO of Marathon Asset Management. Richards predicts that software sector default rates will triple over the next five to seven years, forcing his $24 billion credit-focused firm to halt all software lending until companies prove they can navigate the AI transition.

Despite a slowdown in private markets over the past three years, Schroders Capital's Q2 2025 outlook suggests valuations and yields are now attractive, though significant risks remain from US policy changes affecting trade, immigration, and ESG priorities.

Geopolitical economic tensions create unprecedented market uncertainty, but private capital growth remains unstoppable with wealth clients