economy
Blackstone restricts flagship fund withdrawals as private asset fears reemerge
Blackstone capped withdrawals from its $79 billion BCRED fund after redemption requests rose from 7.9% to 10%, adding to private market liquidity concerns.
TL;DR
- Blackstone capped investor withdrawals from its $79 billion Blackstone Private Credit (BCRED) fund at 5% of shares.
- Redemption requests for BCRED hit 10% in the second quarter, up from 7.9% in the first quarter.
- This restriction follows similar moves by Switzerland's Partners Group, which is also curbing redemptions in its private equity vehicles.
- Fears over liquidity pressures are rattling the private markets, affecting both private credit and private equity.
- Blackstone had previously fulfilled all redemption requests in the first quarter, but this quarter's surge necessitated the cap.
- Blackstone Chief Operating Officer Jon Gray previously stated that withdrawal caps are a feature, not a bug, of these products.
- Pimco's CIO Daniel Ivascyn warned of impending higher losses in the credit industry due to a potential sustained default cycle.