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Software Companies Take a Growing Share of U.S. Private Credit Lending

The source says software loans now represent about 20% of all loans deployed by Business Development Companies (publicly traded private lenders) in the United States.

Fact Check
The ~20% figure for software loans as a share of BDC lending is corroborated by multiple independent, credible sources. The @KobeissiLetter X post (the linked source) states it directly. The Verdence Q1 2026 White Paper independently cites the same ~20% figure. Most importantly, S&P Global Ratings - a highly authoritative financial ratings agency - published two separate articles in February and March 2026 referencing this figure and BDC software exposure specifically. The March 2026 S&P article titled 'BDCs Exposure To Software Stays High, Steady' is particularly strong corroboration. The claim also notes that true exposure may be higher due to sector misclassification, which is echoed across sources. The evidence is consistent and multi-sourced, supporting a high-confidence likely_true assessment.
Summary

Software companies are taking a larger role in the U.S. private credit market, according to the source, which says software loans account for about 20% of all loans deployed by Business Development Companies (publicly traded private lenders). These firms lend to small, mid-sized, and distressed businesses in the United States and give retail investors access to private credit exposure through listed vehicles. The data point highlights how software businesses have become a meaningful borrower segment within non-bank corporate lending.

Terms & Concepts
  • Private credit: Non-bank lending provided directly to companies, often through specialized funds or listed investment vehicles instead of traditional bank loans.
  • Business Development Companies: Business Development Companies are publicly traded investment firms that lend to or invest in smaller, mid-sized, or distressed businesses, giving public-market investors exposure to private company credit.
  • Software loans: Loans made to software companies, typically backed by recurring revenue and used in private credit portfolios as a corporate lending category.