Using Preqin’s BDC holdings data, we assess BDC lenders’ growing exposure to the software sector and related concentration risk
Software companies have long attracted private equity investment, with much financing coming from private credit lenders, including BDCs
Business models have been brought into question by some market participants owing to the disruptive influence of AI
This has led to some redemptions in BDCs as investors raise concerns about potential credit events in loans that back software buyouts
In this note, we take a closer look at the level and concentration of exposure to tech companies within BDCs and the potential for single credit events to permeate the sector
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, aliquip ex ea commodo consequat. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, aliquip ex ea commodo consequat. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, aliquip ex ea commodo consequat. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, aliquip ex ea commodo consequat. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, aliquip ex ea commodo consequat.