Private credit chaos is just getting warmed up. Since August, Ares and KKR have dropped -30%, with Apollo down -11% and Blackstone -21%. PE stocks just had their WORST January in a decade.

Firms like Blackstone and Apollo have billions tied up in software companies that used to be “safe,” but now everyone is worried those investments gonna be worthless once AI automates the tasks people used to pay big monthly fees for. It’s a massive reckoning for the “shadow banking” world that thought tech valuations would just keep going up forever.

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