Barings has become the latest firm to limit withdrawals from a private credit fund, capping shareholder redemptions from the $4.9bn Barings Private Credit Corp (BPCC) at 5% after first-quarter requests surged to 11.3%, according to a report by Reuters.
The fund will fulfil roughly 44% of requested withdrawals, following a broader trend among asset managers facing heightened demand for liquidity.
Retail investors have increasingly exited private credit funds over concerns about transparency, valuations, and potential disruption from AI. Similar measures have been implemented by peers including Apollo, Blue Owl, Ares, and BlackRock. Analysts note that capping redemptions is standard practice for semi-liquid funds, helping prevent forced asset sales and large cash drawdowns.
Despite the redemptions, BPCC reported strong credit quality, with non-accruals at just 0.4%, below the industry historical average of 0.9%. The fund emphasised that long-term results will hinge on underwriting discipline, portfolio construction, and balance sheet management.
