NEW MOUNTAIN CEO: AI SAAS FEARS OVERBLOWN

Speaking on Bloomberg's "The Close," Klinsky addressed recent redemption requests in credit funds, characterizing them as isolated to retail investors with minimal impact on institutional confidence. Institutional investors, he said, are actively deploying capital into credit markets to take advantage of depressed valuations. The shift reflects a divergence between retail and institutional sentiment as credit spreads widen. Klinsky's assessment counters broader market anxiety about AI-driven software company valuations and potential disruption across the SaaS sector. While some observers warn of a reckoning for traditional software vendors facing AI competition, his comments suggest sophisticated investors view current dislocations as buying opportunities rather than signals of fundamental deterioration. The remarks come as private markets navigate volatility in tech valuations and investor appetite shifts toward areas perceived as undervalued.