JP Morgan is attempting to reignite interest in private credit secondaries as the threat of new AI tools stirs unease in public markets, according to 9fin sources.
Several private credit funds are seeking to shed their exposure to software loans at mostly above 95 cents on the dollar, and JP Morgan is sounding out interest from potential bidders that have an opportunistic credit bent, sources said.
The efforts come as some private credit funds are seeking liquidity and reallocating from the tech space amid broader selloffs fueled by AI disruption. HPS, Antares and Blue Owl are among firms on watch given their exposure to the sector, one of the sources said.
As for JP Morgan, this could represent yet another push for the bank to boost loan trading and bring transparency to privately-held assets after a tepid reception in years past. The timing is somewhat opportune, with retail investors clamoring to get their money back from certain BDCs including BlackRock and Blue Owl, and broader market volatility driven by software concerns and the Iran conflict.
Market participants see dislocation between credit investors who are assessing AI risks on their portfolios, and those playing catch-up in what should be a...
