There are a number of headline events so far this week in the exodus from private credit funds, whose market is commonly reported as $1.8 trillion—a modern form of a “run on the bank.” Cliffwater LLC, which claims to manage $33 billion, reports it is facing steep redemption requests, reaching to the level of 7% of its funding. A few days ago, Blackstone Inc. made good on investors redeeming a record 7.9% of shares from its foremost fund, BCRED.
These cases follow redemption pressure reported in recent days by several other prominent names. For example, BlackRock Inc. capped withdrawals from its subsidiary HPS Corporate Lending Fund at 5%, under pressure from investors seeking to cash out at the level of nearly 10%. There are several other prominent names in the same boat.
