BlackRock limits withdrawals from private credit fund after surge in redemption requests
BlackRock restricted redemptions to 5% after $1.2 billion withdrawal requests in Q1 amid investor concerns over private credit liquidity and credit quality risks.
- On Friday, March 6, 2026, BlackRock restricted withdrawals from its $26 billion HPS Corporate Lending Fund after shareholders requested $1.2 billion in redemptions, roughly 9.3% of net asset value, capping repurchases at 5%.
- Investor concerns about credit quality and economic slowdown fueled the surge, exposing a structural liquidity mismatch where HLEND's capital is tied to long-term loans that cannot be immediately sold.
- BlackRock paid out $620 million to satisfy partial requests, citing liquidity management rules as a "foundational" feature of the fund that prevents asset sales during market volatility.
- Rival Blackstone Inc lifted its redemption cap to 7% for its $82 billion BCRED fund, while Blue Owl Capital Inc halted redemptions and liquidated $1.4 billion in assets to meet demands.
- Funds face increased scrutiny as analysts warn this trend reveals sector-wide instability, particularly as investors rush to safe havens amid broader market volatility and AI-fueled economic disruption.
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46 Articles
The largest asset manager in the world has limited withdrawals on one of its funds. Some see it as the beginning of a confidence crisis. ...
The global financial giant BlackRock has, on Friday, limited withdrawals on one of its funds, specialized in private credit. For several weeks, the doubt has taken hold of this sector weighing thousands of billions of dollars, especially with regard to the quality of certain assets.
The New York giant has limited the withdrawals of money from his HPS Corporate Lending Fund. Learn more: SpainCap presses Economy to include private capital within the personal savings and investment account
The group reported that liquidity management for the main consumer credit product is a ‘main’ feature of the investment.
Amidst the nervousness of the global financial market, the HPS Corporate Lending Fund of USD 26 billion reported that shareholders asked to withdraw 9.3% of their shares, but the administration decided to set a cap
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