Retail Investors Keep Fleeing Private Credit, and Some Firms Are Ready to Pounce

Welcome to Going Private. I’m Erin Fuchs, and this is Bloomberg’s twice-weekly newsletter about private markets and the forces moving capital away from the public eye. Today, we take a look at a squishy metric used by a lot of AI firms achieving sky-high valuations. But first, we’re digging into what a surge of redemption requests in retail private credit funds means for the industry, and how some money managers are trying to capitalize on the attempted exodus. If you’re not already on our list, sign up here. Have feedback? Email us at goingprivate@bloomberg.net

Waves of redemption requests keep hitting non-traded business development companies, a type of private credit fund for retail investors, spurring Moody’s Ratings to revise its outlook on them to negative from stable.