Blackstone Inc. President Jon Gray dismissed market concerns about the firm's flagship private credit fund as "a ton of noise" as shares plunged to their lowest level since November 2023. The Blackstone Private Credit Fund disclosed record 7.9% redemptions, forcing the company to boost tender offers and have employees step in to offset withdrawals.

Gray's defense comes as the private credit market faces growing unease following high-profile fraud cases. Market Financial Solutions Ltd., a UK mortgage firm backed by Wall Street lenders, collapsed amid allegations of double-pledging, echoing the failures of Tricolor Holdings and First Brands Group. Last month, Blue Owl Capital Inc. halted quarterly redemptions in one of its private credit funds.

Blackstone shares fell 7.5% to $106.65, marking the steepest intraday decline since late 2023. Gray maintained that underlying borrowers remain healthy and defended the firm's portfolio valuations, stating "Have we been good at marking this portfolio? And the answer is absolutely." The record redemptions represent a significant challenge for Blackstone's private credit business, which has grown rapidly in recent years to become a dominant force in the alternative asset management industry.