Key facts
- Private credit funds experienced renewed withdrawals in the second quarter.
- Institutional investors reduced their exposure to private credit.
- Macroeconomic uncertainty is a key driver of these withdrawals.
- Asset managers are seeking greater liquidity.
Private credit funds faced a resurgence of withdrawals during the second quarter. This trend was primarily fueled by institutional investors actively scaling back their allocations within the private credit space. The decision by these investors is largely a response to the prevailing macroeconomic uncertainty, which has prompted a broader reassessment of risk across asset classes. Furthermore, a growing emphasis on liquidity among asset managers has contributed to the outflows, as they prioritize access to cash in the current market environment.