A private credit vehicle managed by New Mountain Capital is highlighting early gains from a dislocation-driven investment strategy, after purchasing discounted loans in the secondary market and seeing rapid mark-ups in value, according to a report by Bloomberg.

Oaktree Capital Management has marked down the value of its publicly listed private credit vehicle, underscoring growing investor focus on software exposure and artificial intelligence risk within direct lending portfolios, according to a report by Bloomberg.

Sixth Street’s listed business development company has cut its dividend after reporting a quarterly loss, highlighting ongoing pressure across parts of the private credit market as valuation adjustments and sector-specific risks weigh on performance, according to a report by Bloomberg.

Mounting stress in private credit markets could spill over into broader financial conditions through what he described as “psychological contagion,” according to a report by Bloomberg citing comments from Federal Reserve Board Governor Michael Barr.

Ares Management, Blackstone Inc and Blue Owl Capital have moved to reassure investors that artificial intelligence is not materially threatening the performance of their software lending portfolios, despite rising market concerns over disruption risks, according to a report by Bloomberg.

Ares Management and JPMorgan Chase & Co are among a group of lenders providing approximately $800m in private credit financing to support Apollo Global Management’s investment in Canadian fitness operator GoodLife Group, according to a report by Bloomberg citing unnamed people familiar with the transaction.

Citigroup has warned that inexperienced investors in private credit could exacerbate market stress if they are forced to sell loans during a downturn, adding to growing debate over risks in the rapidly expanding $1.8tn asset class, according to a report by Bloomberg.