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Private credit under pressure: Litigation risks behind the liquidity crunch

A general view of 8 Bishopsgate (sometimes referred to as 'the Jenga') 22 Bishopsgate (also known as Horizon 22), 122 Leadenhall Street, the Leadenhall building (Cheesegrater), 52 Lime Street (The Scalpel), 40 Leadenhall Street (also known as Stanza) and 30 St Mary Axe (Gherkin) commercial office skyscrapers above the Tower of London in the early evening on January 05, 2026 in London, United Kingdom.
Photo: John Keeble/Getty Images

A growing litigation pipeline around semi-liquid private credit funds is anticipated as liquidity, valuation, and governance mechanisms face pressure.

The private credit market, having enjoyed over a decade of sustained expansion to surpass $2 trillion in global assets under management, now faces a confluence of pressures that may herald a significant wave of disputes. Investors seeking redemptions are finding their capital less accessible than expected, whilst the banks whose

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