Cracks in US private credit are spreading fast

JPMorgan has marked down the value of certain loan portfolios held by private credit groups, specifically loans made to software companies, according to FT.

The move will limit how much the bank lends to private credit groups against those loans going forward.

This comes as investor withdrawals are surging across the $2 trillion industry.

Last week, BlackRock limited withdrawals from a flagship debt fund after a surge in redemption requests, while Blackstone disclosed that its private credit fund, BCRED, faced a wave of withdrawals in Q1.

JPMorgan CEO Jamie Dimon told investors the bank is being more cautious in lending against software assets, with AI disruption raising default risk for borrowers.

Meanwhile, private credit stock prices are crashing: Blue Owl Technology Finance is down ~-30% since June 2025, Blue Owl Capital and Blackstone Secured Lending are each down ~-20%, and Ares Capital is down ~-15%.

The combination of markdowns, redemption gates, and falling valuations signals that stress in private credit is no longer hidden behind the surface.