Palmer Square Capital cuts private credit fund's value by 10%

Palmer Square Capital BDC

06/05/2026 14:25

May 6 (Reuters) - Palmer Square Capital Management PSBD.N cut the net asset value per share of its private credit fund by 10% in the first quarter as the firm marked down its software assets, it said on Wednesday.

Investors have taken a closer look at private credit funds' portfolios as advances in artificial intelligence threaten the business models of companies in the software sector.

Loans to software businesses represent about 10% of Palmer Square's investments at fair value as of March 31, according to its quarterly report.

 (Reporting by Matt Tracy)

 ((Matt.Tracy@thomsonreuters.com;))