James Reynolds, Goldman Sachs Asset Management's Global Co-Head of Private Credit, said the private credit sector remains resilient despite market jitters. Speaking from Sydney, Reynolds noted that non-payment rates stay low at just 1% to 2%, signaling strong fundamentals in the industry. The firm continues to invest actively across Asia and Australia, maintaining confidence in credit strategies.

Private credit managers in the US have faced investor withdrawals recently, fueled by fears that AI could disrupt software companies that have borrowed heavily. Last month, Blue Owl Capital halted redemptions and began selling assets, while Blackstone's flagship fund allowed a record 7.9% of shares to be redeemed this week. Goldman Sachs has also seen increased capital outflows in late 2025.

While investors worry about AI's impact on software firms, Reynolds said the technology has boosted productivity for Goldman's clients. He emphasized that companies embracing AI and investing in research and development will be better positioned to adapt. The key challenge, he said, is ensuring teams mobilize quickly to integrate AI features into their services.