BlackRock restricts withdrawals from private credit fund amid rising outflows
BlackRock has halted redemption requests totaling $1.2 billion from its HFPS Corporate Lending private credit fund following a surge in outflows reaching 7.3% of the net asset value. Investors in the $26 billion fund requested to withdraw 9.3% of their holdings, but BlackRock limited redemptions to 5%.
At the same time, other major funds have faced liquidity challenges. Blackstone, managing $82 billion in assets, recorded a record volume of redemption requests during the same week and contributed $400 million of its own capital to meet these demands. A similar situation occurred with Blue Owl OBDC llc, where withdrawals have also been suspended.
This trend reflects broader investor concerns about the private credit market’s stability and may lead to further restrictions on access to such assets in the near future.
