Investors in private-credit funds are increasingly seeking to exit their investments, driven by fears that the underlying assets may be overvalued. This trend contrasts with private-equity funds, which have not seen a similar exodus but face comparable valuation challenges. Both investment types are becoming more accessible to individual investors as regulatory frameworks evolve. Private credit funds, which lend to middle-market companies, have historically marketed themselves as stable alternatives to traditional stocks and bonds. However, the recent surge in redemption requests has prompted managers like Blue Owl Capital to restrict withdrawals, leading to declines in the shares of publicly traded managers specializing in alternative assets. Private equity, while larger in scale, raises its own valuation concerns. Managers can report inflated gains by marking up the value of investments, often based on subjective assessments rather than actual market transactions. For instance, StepStone Private Markets recorded a 15% gain on a group of investments worth about $164 million by marking up stakes in other funds. This practice raises questions about the reliability of reported returns, especially when large unrealized gains translate into significant fees for fund managers. As the landscape evolves, concerns about the impact of artificial intelligence on heavily leveraged software companies are also surfacing, indicating that the valuation issues in these markets may be far from resolved.