Activist investor Boaz Weinstein has sounded his warning on private credit, saying the turmoil surrounding Blue Owl Capital’s funds is exposing deeper problems in the $1.8 trillion industry.

“All you need is the snowball to start going down the hill and it started. Blue Owl is right in the middle of that,” the Saba Capital Management founder said Tuesday at the iConnections Global Alts conference in Miami Beach, Florida. “I think we are in the super-early innings of the wheels coming off the car.”

UBS Group noted that default rates in private credit could jump to 15%, two percentage points higher than the warning issued by the Swiss bank less than a month ago, amid deepening market concerns over AI's disruptive impact on the global economy in recent weeks.