Investor withdrawal requests from some of the largest private credit funds aimed at retail and high-net-worth investors fell during the third quarter, suggesting that redemption pressure across the asset class may be beginning to moderate, according to a report by the Financial Times.
Flagship vehicles managed by Apollo Global Management, Ares Management and BlackRock reported lower withdrawal requests, while Blackstone’s leading private credit fund recorded broadly unchanged demand for redemptions. The developments come after a period of heightened concern over corporate defaults, credit quality and the impact of lower interest rates on private credit returns.
However, investors seeking to reduce their exposure remain subject to restrictions, with the funds meeting less than half of the redemption requests they received on average during the quarter. Demand for new investments has also remained subdued, creating additional pressure on the earnings outlook for some of the industry’s largest managers.
Ares Strategic Income Fund reported withdrawal requests equivalent to 13.1% of its shares during the third quarter, compared with 14.4% in the previous quarter. Apollo’s $15bn flagship private credit fund saw requests decline to 14.7% from 16.8%.
BlackRock’s HPS Corporate Lending Fund reported redemption requests of 11.5%, down from 13.3%, while Blackstone’s $43bn flagship private credit vehicle reported requests of around 10%, broadly unchanged from the previous quarter.
