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BlackRock limits withdrawals as redemptions rattle private credit fund

BlackRock fund limits withdrawals as redemptions rattle private credit

reuters.com

March 6, 2026

3 min read

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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.

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