Private-credit jitters: recent events that have spooked investors

Concerns about private credit have risen after a string of recent setbacks. BlackRock capped withdrawals from its HPS Corporate Lending Fund after more than $1.2 billion in first-quarter redemption requests, paying out $620 million — about 5% of the fund's net asset value — and invoking the threshold that allows it to restrict further redemptions.

BlackRock shares fell 5%. Blackstone faced its own outflows, tapping more than 25 top executives to raise $150 million to meet redemption requests for a private-credit fund offered to retail investors. Blackstone president Jon Gray said investors may be reacting to the "constant spin cycle" over recent private-credit failures, which can prompt nervous withdrawals.

Blue Owl ran into trouble on multiple fronts. The firm failed to syndicate a $4 billion data-center loan for CoreWeave amid lender hesitation about exposure to AI-related firms; CoreWeave carries a B+ rating.

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