Major Private Credit Funds BlackRock, Blackstone, Blue Owl Restrict Investor Withdrawals Amid Redemption Surge

Major private credit funds, including BlackRock, Blackstone, and Blue Owl Capital, have implemented withdrawal restrictions or taken measures to manage surging investor redemption requests. BlackRock capped repurchases in its $26 billion HPS Corporate Lending Fund at 5% after 9.3% of shares sought redemption, as reported by the Wall Street Journal. Blackstone's $82 billion BCRED vehicle faced record 7.9% redemption requests this quarter, exceeding its 7% limit, prompting employee capital injection. Blue Owl Capital is selling $1.4 billion in private loans, coinciding with its stock falling below its SPAC listing price. PIMCO, managing $2.3 trillion, recently warned in a client report that direct lending faces a 'full credit cycle' with increased default risk due to looser underwriting and limited liquidity.