Khoda stated, "We turned negative on the private credit space in September of last year," and expects multiple quarters of negative flows for unlisted BDCs. AI-driven obsolescence risk in software (a key lending sector), coupled with elevated redemption requests, creates a liquidity strain that could take several quarters to work through. The private credit space, particularly the unlisted BDC segment, faces cyclical headwinds and sentiment risk, making it unattractive despite not being a systemic threat. Software earnings dramatically outperform, AI disruption is overstated, and redemption pressures subside faster than expected.