Disruptions caused by artificial intelligence are threatening private credit firms’ potential recovery rates in the software sector, according to
“My real concern is in recovery value in these assets,” Yoseloff said at the Milken Institute Global Conferenceon Monday, adding that the average recovery in first-lien debt over the past five years was already below 40 cents. Software businesses are likely to fare even worse because they lack hard assets to support valuations once performance deteriorates, he said.
Tony Yoseloff
Photographer: Lam Yik/Bloomberg
Private equity sponsors — the mainstay of private credit lending ...