Diameter Co-Founder Sees Returns Diverging Across Private Credit

Diameter Capital Partners sees a “reckoning threatening” private credit amid the recent investor exodus spurred by a software selloff, according to Jonathan Lewinsohn, managing partner and co-founder of Diameter Capital Partners.

That reckoning will come in the form of “dispersion of returns in private credit, which has never happened before,” Lewinsohn said Wednesday in a Bloomberg TV interview.

The software selloff induced by fears related to AI disruption has spooked private market investors, given the asset class’s exposure to the sector, which has led to exits reminiscent of the bank runs on Lehman Brothers and ...