The first quarter of 2026 saw a stark increase in litigation involving private credit funds, coinciding with a wave of investor redemption requests that directly conflicted with funds’ redemption caps. The gathering storm of litigation has happened in parallel with – and arguably as a result of – explosive growth in the number and complexity of private credit funds in the last several years. To help sponsors assess pressure points in their own private credit funds based on issues raised in litigation, the Private Equity Law Report interviewed O’Melveny & Myers partners Meaghan VerGow and Lauren M. Wagner. This article captures their insights on the factors driving the rise in private credit litigation; alleged violations involving fund strategies, valuations and disclosures; differences and similarities between allegations in litigation and the SEC’s concerns about private credit; risk mitigation tactics that sponsors can adopt; and threats that could emerge in future private credit lawsuits. See “Stale Marks, Redemption Pressure and Valuation Process Disclosures:  The Emerging Shape of Private Credit Litigation” (Oct. 1, 2026).