Key facts
- Blackstone capped withdrawals at its private credit fund, Blackstone Private Credit Fund (BCRED).
- Investors sought to redeem 10% of outstanding shares in Q2, up from 7.9% in Q1.
- The fund will fulfill repurchase requests representing 5% of shares outstanding.
- Capital inflows were 2% of NAV, resulting in a net outflow of 3% of NAV in Q2.
- Cliffwater's private credit fund also capped redemptions at 5% amid 17% in requests.
Blackstone has capped withdrawals at its flagship private credit fund, Blackstone Private Credit Fund (BCRED), as redemption requests increased in the second quarter. Investors sought to pull 10% of outstanding shares in the second-quarter tender offer, a rise from 7.9% in the previous quarter. The fund announced it will fulfill repurchase requests representing 5% of shares outstanding. Redemptions across non-traded private credit funds have risen recently due to negative headlines surrounding the asset class. While Blackstone had previously fulfilled 100% of repurchase requests in the first quarter, it has now implemented caps, stating the structure is designed for long-term outperformance. Capital inflows were roughly 2% of net asset value in the second quarter, resulting in a net outflow of approximately 3% of NAV. Repurchase requests slowed in the latter half of the offer period. Cliffwater's $31.3 billion private credit fund also saw investors submit redemption requests for 17% of shares, with redemptions capped at 5%. Blackstone's shares rose 8% following the announcement.