The Carlyle Tactical Private Credit Fund (CTAC) has been significantly impacted by a wave of redemptions, with requests totaling approximately 15.7% of its outstanding shares, as reported in a shareholder letter. This trend is part of a broader industry concern regarding the health of the private credit market, especially in light of rising interest rates and recent credit issues. Major asset managers, including Morgan Stanley and BlackRock, have responded by capping redemptions at the standard 5% quarterly limit. Shares of Carlyle Group fell by 2.7% in morning trading as investors reassess their exposure to the private credit sector, particularly concerning technology lending. Analysts note that fears surrounding artificial intelligence's potential impact on software companies could further weaken their ability to repay loans, intensifying scrutiny in this multi-trillion-dollar market. As of January 30, the CTAC fund focused primarily on direct lending, with software making up 12.7% of its portfolio, followed by financial services at 8.4% and healthcare at 7.9%.