BlackRock limits withdrawals as redemptions rattle private credit fund
reuters.com
March 6, 2026
3 min read
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47/100
Summary
BlackRock has limited withdrawals from a major debt fund due to a surge in redemption requests amid growing concerns in the $2 trillion private credit industry. Shares of BlackRock fell 6.7% on the New York Stock Exchange following negative U.S. jobs data and escalating geopolitical tensions.
Key Takeaways
- BlackRock has limited withdrawals from its HPS Corporate Lending Fund after receiving $1.2 billion in redemption requests, which exceeded the 5% threshold for the first time since the fund's inception.
- The private credit industry is facing increased investor concerns due to rising loan defaults and market volatility, prompting many retail investors to seek withdrawals.
- HLEND's portfolio includes 19% exposure to the software sector, which is experiencing aggressive selling amid fears of disruption from AI startups.
- Blackstone has raised its redemption limit from 5% to 7% in response to similar investor pressures on its funds.