Cheap Private Credit Funds Draw Bargain Hunters

Bargain hunters are snatching up private lending funds in the stock market, eager to buy assets that look cheap by a key measure.

Valuations for the funds last month dropped to their lowest since 2022 amid concerns that the lenders may be overexposed to software businesses under threat from AI disruption. Souring sentiment toward the vehicles’ non-traded peers, which have been hit with more than $15 billion in redemption requests from investors, also spooked public market shareholders, creating a buying opportunity for some investors.