Goldman banker: Clients ‘glad’ for ‘distraction’ of Iran war

Group 1 - A senior Goldman Sachs banker indicated that some clients are relieved that the Iran war is diverting attention from concerns about AI and private credit [2][3] - Concerns about potential disruptions to technology companies from AI have negatively impacted the private credit market, particularly affecting lenders focused on software businesses [4] - Shares in private credit firms, such as Blue Owl Capital, have seen significant declines, with a nearly 40% drop this year, leading to restrictions on cash withdrawals at one of its funds [4] Group 2 - Legal & General expressed comfort with its own exposures to private credit, with over 20% of its diversified annuity portfolio invested in this area [5] - The private credit market has faced increased scrutiny following high-profile failures, yet Legal & General remains selective in its investment choices [6][7] - Legal & General reported a nearly 30% increase in private market assets under management, reaching £75 billion [8]