80-90% of the private credit/leveraged loan exposure in tech is specifically in "software" and "business services." AI is actively disrupting these legacy software/service models. Unlike hyperscalers spending money (good for equity), these private companies rely on stable cash flows that AI automation threatens to erode. Mish warns of credit quality deterioration here. AVOID Private Credit/BDCs with heavy exposure to legacy software/services. The "AI disruption" timeline is slower than expected, allowing these companies to refinance or pivot.