Going Private

Software Chameleons Make Credit Hazards Hard To Spot

Lenders assign varied labels to borrowers

A zoo keeper poses with a Jackson's Chameleon during the annual stocktake photocall at London Zoo  

Photographer: BEN STANSALL/AFP via Getty Images

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Welcome to Going Private, I’m Sinead Cruise and this is Bloomberg’s twice-weekly newsletter about private markets and the forces moving capital away from the public eye. Today, we look at the data black holes putting financial regulators on edge, an accelerating private markets push to win over Japan’s super-rich and the the lawyer fighting to keep high-risk private assets out of 401(k)s. But first we look at how shapeshifting software firms might be masking the AI threat to private credit. If you’re not already on our list, sign up here. Have feedback? Email us at goingprivate@bloomberg.net

When is a software firm not a software firm? The answer, it would seem, depends very much on the whim of its private credit lenders.