Goldman Sachs Private Credit Funds Face $200B Software Debt Maturing by 2028
Goldman Sachs’s private credit funds are bracing for over $200 billion of high-yield and leveraged-loan technology debt maturing through 2028, as borrowers face refinancing pressure from rising war-driven borrowing costs. Heightened by AI-driven product obsolescence risks, some funds are already restricting new software loans.
1. Looming $200B Maturities
GS’s private credit portfolios include over $200 billion of high-yield and leveraged loans to software firms due by 2028. This concentration reflects a decade-long surge in SaaS investments within private markets.
2. Rising Refinancing Costs
Heightened by geopolitical tensions, borrowing rates for these maturing loans have climbed, squeezing issuers seeking to refinance. Concurrently, rapid AI advancements threaten to erode software valuations and future cash-flow projections.
3. Fund Restrictions and Market Pressure
In response, several GS credit vehicles have begun reducing software sector allocations and tightening underwriting standards. This shift has contributed to stalled private equity software sales and falling loan valuations.