BlackRock limits withdrawals from its largest private credit fund
BlackRock is capping how much investors can pull from its $26 billion HPS Corporate Lending Fund after a wave of people wanted their money back.
Requests hit 9.3%, but only 5% will actually be paid out.
The move is meant to keep the fund stable and avoid problems if too many people try to leave at once.
Industry-wide trend
It's not just BlackRock — other big private credit funds like Blackstone and Blue Owl have faced sizable redemption requests and taken steps to manage them;
Blackstone fulfilled a 7.9% tender and Blue Owl permitted about $527 million of redemptions.
With the whole $1.8 trillion private credit industry facing questions about lending risks and tech market shakeups, these limits are a way for funds to protect themselves and everyone's investments during uncertain times.