Private credit (~$1.8T AUM) is seeing significant redemption requests, underwriting quality concerns ("crisis of bad underwriting"), and exposure to late-cycle lending practices (e.g., PIK loans, software ARR loans). The sector has emphasized growth over risk management and is largely untested through a full credit cycle. The "semi-liquid" fund structure is proving illiquid during stress, eroding investor confidence. The space faces a shakeout where investors will differentiate managers. Current dynamics make it unattractive and risky for general exposure, especially for retail investors who may not understand the liquidity mismatch. A severe economic downturn leading to widespread defaults could validate the bearish view, while a rapid resolution of geopolitical tensions and rate cuts could stabilize the sector.