Private credit manager Invico Capital has implemented a structured liquidity management plan at one of its funds as it responds to redemption requests from large investors, amid rising scrutiny across the private credit market, according to a report by Bloomberg.
The Calgary-based firm said it contacted certain investors in its Invico Diversified Income Fund to understand their liquidity needs before adopting the plan, which is designed to accommodate withdrawals while preserving net asset value and yield for remaining investors. Invico manages around CAD4bn in assets across Canada and the US.
Some investors were reportedly cautioned that a sharp increase in redemptions could result in gating, a mechanism that temporarily restricts withdrawals. The discussions were said to be framed as a liquidity management exercise rather than an indication of an imminent suspension of redemptions.
The move comes as liquidity risk in private credit comes under closer examination, particularly among funds offering periodic redemptions. Earlier this month, Blue Owl Capital restricted withdrawals from one of its private credit funds, opting instead to return capital through asset sales and distributions.
