* FT says markdowns apply to loans made to software

companies

* Remarking of loans doesn't often occur, but not the

first time for JPM, source says

* Investor withdrawals surge from private credit vehicles

like BlackRock's ( BLK ) fund

(Recasts throughout with comment from source)

By Angela Christy M and Rajveer Pardesi

March 11 (Reuters) - JPMorgan Chase ( JPM ) has marked

down the value of certain loans held by private-credit groups, a

person close to the bank said on Wednesday, as investor worries

mount for the $2 trillion industry over deteriorating credit

quality.

The Financial Times, which first reported the news on

Wednesday, said the markdowns apply to loans made to software

companies.

The remarking of loans does not happen often, but this isn't

the first time the bank has remarked loans, the person told

Reuters.

The source added that remarking was "important to do when

markets warrant it rather than waiting for a crisis to come

along."

JPMorgan ( JPM ) declined to comment.

INVESTOR WITHDRAWALS

Private credit refers to loans issued by non-bank lenders,

typically to riskier borrowers or companies funding large

buyouts.

While these loans can be arranged quickly and serve

borrowers too risky for banks, rising concerns over credit

quality and exposure to software firms vulnerable to AI

disruption are clouding the fast-growing market.

The industry has seen a wave of investor withdrawals this

year on fears of potential defaults by software companies.

Last week, BlackRock ( BLK ) said it limited withdrawals

from a flagship debt fund after a surge in redemption requests,

while Blackstone disclosed that its private credit fund,

known as BCRED, faced a surge in withdrawals in the first

quarter.

Private credit has also been hit by questions over valuation

and transparency, with concerns about Blue Owl replacing client

redemptions with promised payouts, and the exposures of some

players last year to the bankruptcies of a U.S. auto parts

supplier and a subprime auto lender.

JPMorgan ( JPM ) CEO Jamie Dimon told investors at the bank's

leveraged finance conference last week that it was being more

prudent in lending against software assets, the Financial Times

added, citing two sources.

(Reporting by Rajveer Singh Pardesi in Bengaluru; Editing by

Rashmi Aich and Saumyadeb Chakrabarty)