Private credit funds face renewed withdrawals in second q…

In the second quarter of 2026, private credit funds are experiencing significant withdrawal pressures, primarily driven by investor concerns related to software exposure, asset valuations, and transparency. Recent data indicated $7.1 billion in redemptions during the first quarter, the highest recorded, with further tests for investor demand expected as redemption windows for U.S. non-traded private credit funds closed recently. Notably, Blackstone capped withdrawals after investors sought to redeem 10% of shares, exceeding the 5% limit. Similarly, Cliffwater reported redemption requests of 17% of shares, significantly above the 5% cap, indicating growing hesitance among investors in this asset class.

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June 4 (Reuters) - Private credit funds sold to wealthy investors face another test in the second quarter, as early filings point to continued redemption pressures driven by concerns over software exposure, valuations and limited transparency in ‌the asset class.

Redemption windows at key U.S. non-traded private credit funds began closing last Friday, with investors and analysts watching withdrawal requests for signs of whether first-quarter pressure is persisting.

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Across eight large vehicles reviewed by Reuters, first-quarter redemptions totalled about $7.1 billion, the highest in the dataset, as weaker fund ⁠raising and June redemption deadlines set up another test of investor demand.

Following is a list of recent moves by private credit funds this week:

BLACKSTONE

Blackstone (BX.N), opens new tab capped withdrawals at Blackstone Private Credit Fund after investors sought to redeem 10% of outstanding shares in the second-quarter tender offer, double the fund’s 5% quarterly repurchase limit.

The fund said capital inflows were about 2% of net asset value, resulting in a net outflow of roughly 3% of NAV, while repayments and inflows outpaced share repurchases.

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BCRED ‌had ⁠met all withdrawal requests in the first quarter, but said second-quarter repurchase demand eased later in the offer period and was lower for onshore investors than in the previous quarter.

CLIFFWATER

Cliffwater told investors in a shareholder letter on Tuesday that investors in its $31.3 billion ⁠private credit fund submitted requests to redeem 17% of shares in the second quarter, while redemptions were capped at 5%.

The requests rose from the first quarter, when investors sought to ⁠redeem 14% of shares in the Cliffwater Corporate Lending Fund and redemptions were capped at 7%.

The fund is structured as an interval fund, which must periodically ⁠offer to repurchase shares. It holds about 4,000 assets, including direct loans to companies and stakes in funds managed by other investment firms.

Reporting By Patturaja Murugaboopathy and Arasu Kannagi Basil in Bengaluru Editing by Vidya Ranganathan and Susan Fenton

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Private credit funds face renewed withdrawals in second quarter

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