BFA attorneys Javier Bleichmar, Evan Kubota and Brandon Slotkin have published an article in Law360 titled “What the Private Credit Downturn Means for Investors.”
The piece highlights rising default rates and recent high-profile collapses, including First Brands, to illustrate key risks such as borrower opacity, over-concentration, and potential conflicts of interest involving fund managers. It also examines how these dynamics can increase the risk of fraud and investor losses.
The article further outlines potential legal avenues for recovery, including claims for breach of fiduciary duty, fraud, negligent misrepresentation, and contractual violations, emphasizing the importance of investor vigilance as stress in the sector continues to mount.
