NEW YORK — U.S.-based asset management giant BlackRock has imposed limits on investor withdrawals from one of its private credit funds after a sharp increase in redemption requests, signaling growing pressure in the global private credit market.
The decision affects the company’s $26 billion HPS Corporate Lending Fund (HLEND), which received withdrawal requests totaling about $1.2 billion during the first quarter, equivalent to roughly 9.3% of the fund’s net asset value.
However, under the fund’s rules, quarterly redemptions are capped at 5% of assets. As a result, the fund announced it would meet withdrawals of about $620 million, reaching the allowed limit and restricting further outflows.
Rising pressure in the private credit sector
The move comes amid growing concerns among investors about the $2 trillion global private credit market, where funds provide loans to mid-sized companies that are not easily traded or liquidated. Increasing uncertainty in financial markets has led some investors—particularly retail and wealthy individuals—to request their money back.
Private credit funds typically invest in long-term loans that cannot be quickly sold, which creates liquidity challenges if many investors seek to withdraw funds at the same time. Analysts say such withdrawal limits are designed to prevent a mismatch between the long-term nature of the loans and short-term investor liquidity demands.
Market reaction
The development is being closely watched across the financial industry, as several asset managers have recently faced similar redemption pressures. Concerns about loan defaults and slowing economic conditions have contributed to heightened caution among investors.
BlackRock’s decision highlights the increasing scrutiny of private credit funds, which have grown rapidly in recent years but are now facing challenges related to liquidity and investor confidence.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök