BlackRock has capped withdrawals from its flagship private credit fund, HLEND, for a second straight quarter. Redemption requests climbed to about $1.6 bn in Q2, up from $1.2 bn in Q1, yet the firm only honored 5% of the fund’s net assets—roughly $620 m—leaving most demands unmet amid a wave of investor pullbacks across the private credit market.

HLEND, buoyed by the $12 bn purchase of HPS Investment Partners, sits at the core of BlackRock’s private‑markets push. The leveraged vehicle commands nearly $25 bn in assets, making it one of the largest buyers of private corporate loans. HPS warned that new commitments would absorb the redemptions honored so far this year for the next quarter.

Industry‑wide pressure mirrors moves by Apollo, Ares, Blackstone, Blue Owl and Morgan Stanley, all capping outflows at 5%. The trigger? Federal Reserve rate cuts last year that dented returns, compounded by fraud scandals at First Brands Group and Tricolor and AI‑driven concerns over enterprise software borrowers that could reshape lending dynamics for institutional investors globally.

Despite the squeeze, HLEND remains a money‑spinner, earning $287 m in management and incentive fees last year and posting an 8.2% return after fees. Fink insists demand from sophisticated investors is accelerating, even as retail sentiment falters. The firm still targets more than $10 bn in private‑market revenue by 2030 and continues to chase institutional growth daily.