Key facts
- Partners Group capped redemptions due to increased withdrawal requests and market volatility.
- Blackstone's private credit fund capped withdrawals at 5% after receiving 10% redemption requests.
- Cliffwater's fund capped withdrawals at 5% amid 17% redemption requests.
- Private credit issuance dropped significantly, with U.S. direct lending down 40% in Q2 2026.
- Investor skepticism about private market valuations, transparency, and liquidity is growing.
Stresses in the private credit market are extending into private equity, with Swiss asset manager Partners Group capping redemptions this week due to increased withdrawal requests and industry-wide volatility. Partners Group, which manages approximately $185 billion, reported being affected by the volatility, leading to a slump in its shares and reflecting broader investor skepticism about the private asset class. Similar to other private investment vehicles, Partners Group faces challenges related to rapid growth and increasing investor doubts about valuations, transparency, and liquidity. Private credit funds are also experiencing sustained redemption pressures. Blackstone's private credit fund capped withdrawals at 5% after receiving requests for 10% of its shares in the second quarter. Cliffwater's $31.3 billion fund saw 17% redemption requests, also capped at 5%. This follows $7.1 billion in redemptions across eight major vehicles in the first quarter. The rapid expansion of private credit is also slowing, with U.S.-focused direct lending issuance plummeting 40% to $44.76 billion in the second quarter of 2026. Industry data indicates subdued fundraising and elevated redemption requests, signaling a cautious phase for the industry that could curb earnings for private credit managers by limiting asset growth and transaction fees.