Updated
Updated · CNBC · Jun 4
Blackstone Caps $79 Billion BCRED Withdrawals at 5% as Redemption Requests Hit $4.5 Billion
Updated
Updated · CNBC · Jun 4

Blackstone Caps $79 Billion BCRED Withdrawals at 5% as Redemption Requests Hit $4.5 Billion

3 articles · Updated · CNBC · Jun 4

Summary

  • $4.5 billion in second-quarter redemption requests pushed Blackstone to restrict withdrawals from its flagship BCRED private credit fund.
  • The asset manager capped investor withdrawals at 5% of shares after requests reached 10%, triggering limits at the $79 billion non-traded business development company.
  • Blackstone shares still rose 1.6% in premarket trading Thursday, suggesting investors saw the gate as manageable despite the surge in withdrawal demand.
  • The move highlights growing liquidity pressure in large non-traded private credit vehicles, where investor exits can outpace the cash immediately available for redemptions.

Insights

As funds halt withdrawals, should 401(k)s be opened to the high-risk, illiquid world of private credit?
Is AI's disruption of the software industry exposing a fatal flaw in the trillion-dollar private credit market?