Private Credit & PE Exit Backlog Crisis

PE exit backlog at $860B zombie assets, 40% of NAV held >7 years. Blue Owl redemption halt, BlackRock TCP sale, European maturity wall. Insurance-linked private credit exposure to AI data center loans creates potential taxpayer backstop. Manager selection (not vintage) key for LP returns per Cambridge Associates data. New dimension: closed loop of PE-owned insurers funding neoclouds via policyholder premiums, with state guaranty associations as automatic bailout—a hidden systemic risk.