Carlyle has imposed limits on investor withdrawals from its Tactical Private Credit Fund after redemption requests surged in the first quarter with the $7bn vehicle receiving requests to redeem roughly 15.7% of its shares, according to a report by Bloomberg.
With requests significantly exceeding its quarterly liquidity threshold, the firm capped withdrawals at 5%, fulfilling less than one-third of the total requested amount. Based on the fund’s most recent net asset value, this equates to approximately $240m returned to investors out of around $750m sought.
The move reflects mounting pressure across the private credit market, where investors have been seeking to pull capital from a range of funds amid growing concerns over credit quality and sector concentration. In particular, exposure to software companies—seen as vulnerable to disruption from artificial intelligence—has emerged as a key area of focus.
Carlyle indicated that the timing of its redemption window may have contributed to the elevated demand, as it followed earlier deadlines at other funds, leaving some investors with limited liquidity elsewhere.
In communication to investors, the firm said the decision to gate withdrawals was aimed at preserving portfolio stability, avoiding forced asset sales, and maintaining disciplined liquidity management during a period of market uncertainty.
The fund is among several private credit vehicles to introduce similar restrictions this year, with managers including Apollo, Ares and Morgan Stanley also curbing redemptions. Others, such as Blackstone and Oaktree, have taken steps to meet withdrawal requests more fully.
Carlyle added that retaining capital positions the fund to deploy into new lending opportunities, noting early indications of spread widening in credit markets.
The Tactical Private Credit Fund has approximately 12% exposure to software assets and invests across a diversified range of strategies, including asset-backed finance, direct lending and opportunistic credit. Portfolio valuations are conducted on a daily basis using a combination of third-party pricing and internal models.
