As concerns mount that artificial intelligence could undermine software company earnings, Goldman Sachs has reassured investors that its private credit platform remains resilient compared with peers facing heightened redemption pressure.
The Wall Street firm’s asset management arm emphasized stable investor behavior and comparatively lower exposure to vulnerable sectors during a period of shifting sentiment across alternative assets.
Redemption Rates And Investor Appetite
In a letter to investors, Goldman reported that fourth-quarter redemption rates at Goldman Sachs Private Credit Corp stood at 3.5%, below the more than 5% recorded by comparable firms.
The firm added that December inflows were 11% above the year-to-date average, signaling sustained appetite despite broader volatility within the private credit landscape.
These metrics arrive as alternative asset managers confront renewed scrutiny following turbulence at Blue Owl, which triggered a selloff in shares tied to private credit exposure.
The sector, now valued at roughly $2 trillion, has expanded rapidly in recent years and plays a significant role in financing technology-focused enterprises.
Assessing AI Disruption Risk
Goldman acknowledged that artificial intelligence is lowering development costs, potentially intensifying competition for incumbent software companies and pressuring profitability.
“We agree with the perspective that AI is significantly lowering development costs which will lead to increased competitive intensity for incumbent software companies,” the firm stated in its letter.
However, Goldman emphasized its focus on businesses demonstrating structural advantages and defensible incumbency moats that may prove resilient against new entrants.
The firm disclosed that enterprise software credit accounted for approximately 15.5% of GS Credit exposure at the end of the third quarter, positioning it toward the lower end of peer allocations.
Goldman also revealed it declined its first transaction due to AI-related concerns in October 2023, highlighting a cautious approach to underwriting in vulnerable segments.
Navigating Volatile Macro Conditions
“As we enter 2026, the private credit landscape is facing volatile macroeconomic conditions, shifting flows in the traded and non-traded BDC (Business Development Company) market, and accelerating technological change – particularly around AI,” Goldman wrote.
The company introduced its first internal framework to evaluate AI disruption risk in early 2025, reflecting growing institutional focus on technology-driven credit vulnerabilities.
“We do not underestimate the risk of AI disruption,” the firm added, underscoring ongoing vigilance as investor perceptions evolve.
While fears surrounding artificial intelligence continue to ripple through capital markets, Goldman’s measured exposure and steady redemption profile position it to navigate uncertainty with comparatively limited strain.