Posted on 06/07/2026 9:36:18 AM PDT by Twotone
Blackstone is restricting withdrawals from its flagship Blackstone Private Credit, or BCRED, fund following a spike in investor redemption requests, as fears over liquidity pressures rattled private markets.
The asset management giant capped investor withdrawals from the $79 billion nontraded business development company at 5% of shares, after redemption requests hit 10% during the second quarter.
It comes after U.S. private markets giants sold off on Wednesday after Switzerland’s Partners Group said it was curbing redemption requests in one of its European private equity vehicles.
Partners Group said on Thursday it was prepared to restrict withdrawals in more of its funds, warning that the spike in client withdrawals is now spreading from private credit into private equity.
Shares in Blackstone were up more than 5% in late-morning trading Thursday. They fell about 4% on Wednesday during the sell-off.
(Excerpt) Read more at cnbc.com ...
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But all of these guys were telling us there is no issue with Private Credit just three weeks ago. I wish they would get their stories straight.
Private equity is a separate discussion. Lots of funds that haven’t wound down, and are past their fund life. Yet they still own portfolio companies because they haven’t exited those (can’t find a buyer), which means they can’t give Limited Partners any money back.
Continuation funds on the rise, and with the lack of money being sent back to the Limited Partners, there isn’t as much money to reinvest in new funds. That then means there are less buyers of portfolio companies. It’s a vicous cycle beginning, and many PE firms haven’t realized that their last fundraise, was their last fundraise.
If you track the private credit funds on the NYSE, you will see they are oddly inversely correlated to oil prices
In the short-term reaction of the market, higher oil means higher inflation which means they fear the Fed raises interest rates - so these stocks drop.
Basically, these funds need low interest rates for their debtors to survive.
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