Shares in major US-listed alternative asset managers came under pressure in premarket trading on Wednesday as investors positioned for Q2 updates on withdrawals from non-traded private credit vehicles, following a sharp rise in redemption activity in the prior quarter, according to a report by Reuters.
Blackstone, Apollo Global Management, Ares Management, Blue Owl Capital and KKR all fell by more than 5%, while Carlyle Group declined around 2.8%, reflecting broader investor caution ahead of key liquidity updates across the sector.
Redemption windows for major US non-traded private credit funds began closing at the end of last week, with staggered cut-offs running through June. Market participants are closely monitoring forthcoming disclosures on withdrawal requests, which are expected to provide a clearer read on investor sentiment following a volatile first quarter.
Early indications from fund-level reporting have already pointed to continued stress. Cliffwater reported that redemption requests at its flagship $31.3bn private credit fund rose to 17% in Q2, up from 14% in the previous quarter.
The earlier surge in Q1 – when withdrawal requests across US non-traded private credit vehicles reached as high as 41% – prompted many managers to enforce standard 5% gating mechanisms, limiting liquidity for investors but helping to reduce the risk of forced asset sales.
Investor appetite for private credit exposure has weakened in recent months amid a mix of negative media attention, liquidity constraints within semi-liquid structures, and broader macro concerns, including worries over potential disruption in parts of the software and technology-linked borrower base.
Analysts at TD Cowen noted that the latest Cliffwater data point could delay any meaningful recovery in sentiment beyond the Labour Day period, with the possibility that pressure persists through year-end if subsequent fund updates fail to show improvement.
At the Bernstein Strategic Decisions Conference in New York last week, senior industry executives broadly signalled that elevated redemption activity is likely to remain a feature of the private credit landscape for the remainder of the year.
Separately, Partners Group said it was implementing caps on withdrawals from an $8.6bn private equity vehicle after a rise in redemption requests, underscoring how liquidity pressure is beginning to extend beyond private credit into broader private markets strategies.
