March 26, 2026 - Kenneth Leon, Director of Global Research at CFRA, examines a critical risk emerging in private credit's AI infrastructure lending boom. While alternative asset managers have capitalized on financing opportunities in AI data centers and power transmission, Leon's March 25 thematic report warns that rising debt levels could threaten creditworthiness, especially in a recession scenario.
The analysis covers firms with concentrated private credit exposure to hyperscalers (Apollo, Ares, and Blue Owl) alongside more diversified players like Brookfield, Blackstone, and KKR. With four of these firms in the S&P 500, their performance has broader implications for equity investors beyond the alternative asset management sector.