Software Exposure in Leveraged Credit: The Potential Paths Ahead

Research evidence excerpt

Software Exposure in Leveraged Credit: The Potential Paths Ahead

Credit Strategy Research

25 June 2026 | 6:23PM EDT

GLOBAL CREDIT TRADER

n AI-related investment implications are front and center across asset classes, with Amanda Lynam, CPA

+1(212)934-1895 |

leveraged finance investors focused more narrowly on the risk of AI-driven amanda.lynam@gs.com

Goldman Sachs & Co. LLC

disruption to legacy Software business models.

Spencer Rogers, CFA

+1(801)884-1104 |

n The broadly syndicated loan (BSL) and private credit markets each count spencer.rogers@gs.com

Software as the largest sector weight. This stems from their role as a financing

Sara Grut

partner to private equity (PE), which historically favored Software due to its high +44(20)7774-8622 | sara.grut@gs.com

Goldman Sachs International

portion of recurring revenue, predictable cash flows, capital-light model, low

Shamshad Ali

customer churn, and attractive margins. +1(212)902-6712 |

shamshad.ali@gs.com

Goldman Sachs & Co. LLCn Today there is heightened focus on how AI-related technology may affect the

landscape for Software subscription models and licensing. Some credit capital

structures—which were formed in an era of peak valuations and lower interest

rates—may also need to be “right sized,” irrespective of potential AI-related

disintermediation.

n While the pressure on Software loans was most visible early in 2026 (and has

since stabilized), a sentiment overhang persists for the sector. The Software loan

maturity walls in 2028 are steep, leaving refinancing access as key to the forward

path for valuations and ratings (which are important for the loan buyer base).

n Importantly, not all Software business models are created equal. Our equity