JPMorgan Chase & Co (JPM  ) has started restricting lending to loans associated with software companies in its private credit funds, a source familiar with the matter told Bloomberg.

The source indicated this decision was precautionary and noted JPMorgan has previously revalued assets. JPMorgan's exposure to private credit totalled $22.2 billion in October 2025, a report from Moody's ratings agency stated.

Private equity and private credit firms that invested in software-as-a-service (SaaS) companies are also seeing declines, as concerns that AI and platform-as-a-service companies will erode the software sector's relevance, Wood explained.

In February, Blue Owl Capital (OWL  ) announced a pivot to accelerate redemptions. The firm liquidated $1.4 trillion in assets to return capital to existing investors.

CEO Craig Packer characterized the move as a "strategic transaction," but that didn't calm investors. Blue Owl shares plunged nearly 36% year to date, and more than 47% over the last year.

On Friday, BlackRock (BLK  ) limited withdrawals from its $26 billion HPS Corporate Lending Fund after redemption requests surged to 9.3% of the fund's net asset value. The asset manager approved about $620 million in redemptions. The fund hit a 5% quarterly threshold, allowing it to restrict additional withdrawals.

Other large firms in the private credit sector are also facing heightened redemption requests.

Blackstone permitted investors to withdraw a larger-than-normal sum of $3.7 billion from its $82 billion BCRED fund, according to a recent filing. After receiving $2 billion in new inflows, net redemptions totaled approximately $1.7 billion.

Meanwhile, Cliffwater's investor redemption requests from its $33 billion private credit flagship fund have exceeded 7%, Bloomberg reported.