James Reynolds, Co-Head of Global Private Credit at Goldman Sachs Asset Management, stated that the private credit industry remains resilient, with very few borrowers struggling to repay their loans.
Reynolds commented during an interview in Sydney on Thursday that fundamental conditions are still very strong at this stage. He added that default rates remain low, ranging between 1% and 2%. The firm has been actively investing in various credit strategies across Asia and Australia, he noted.
This statement comes as private credit firms in the U.S. have recently faced a wave of investor withdrawals. Concerns have emerged about whether the industry has extended excessive loans to software companies that may be disrupted by artificial intelligence. Last month, Blue Owl Capital Inc. suspended quarterly redemptions for one of its funds and began selling assets to return capital to investors. This week, Blackstone allowed investors to withdraw from its flagship private credit fund, setting a record redemption rate of 7.9%.
Reynolds mentioned that, like other firms in the market, Goldman Sachs has observed an increase in capital outflows in the fourth quarter of 2025 and is closely monitoring whether this trend will continue into the first quarter of 2026.
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