Private-credit defaults, AI exposure, tax friction and liquidity restrictions test valuation confidence

Semi-liquid private-credit vehicles continue to face redemption pressure and withdrawal caps, while PIK income, OID/contingent-payment structures, covenant waivers, non-accruals, AI-sensitive borrowers and refinancing needs challenge NAV confidence. Recent coverage reinforces that yield, collateral and headline NAV do not establish realizable value; HNW diligence must include taxable-income timing, cash-pay capacity, valuation independence and actual redemption mechanics.