Retail redemption pressure tests private-credit funds

Moody's warned last summer that a surge of retail money into private markets could create risks, noting many individual investors may be unprepared for the illiquidity of private assets and often need quicker access to capital. Those concerns are materializing as retail-focused private-credit vehicles face redemption pressure.

Blue Owl halted redemptions from its Capital Corp II fund, offering investors incremental payments as it sells assets rather than allowing quarterly redemptions. Blackstone received a record $3.8 billion in redemption requests and had more than 25 executives pool $150 million of personal funds to help meet them.

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