JPMorgan is seeking ​to offload ⁠risk tied to more than $4 ‌billion in loans to private equity funds, Financial ​Times reported on Friday, citing people familiar with ​matter.

The lender ​is in talks with investors over a transaction that would allow ⁠it to transfer risk tied to 'net asset value loans' backed by private equity fund assets, the report said.

Reuters ​could ‌not immediately ⁠verify ⁠the report. JPMorgan did not immediately respond to Reuters' ​request for comment.

Investor ‌sentiment toward private ⁠credit has weakened in recent months, as concerns mount over loosening lending standards and the potential for AI to disrupt the software sector — a key area of exposure for many funds.

The Wall Street bank was ‌working on a risk transfer that would ⁠allow it to retain ​the NAV loans on its balance sheet while shifting a portion of ​potential ‌losses to investors, FT added.

(Reporting by ⁠Preetika Parashuraman ​in Bengaluru; Editing by Sonia Cheema)