Carlyle Tactical Private Credit Fund, a $7 billion private‑credit vehicle, capped redemptions after Q1 investors sought roughly 15.7% of shares. The fund limited withdrawals to 5%, delivering about $240 million of the $750 million requested, based on its December net asset value. Shareholders received a letter outlining the decision, which Bloomberg obtained.

The move comes amid a wave of redemption pressure across the private‑credit market, where investors are pulling billions from vehicles run by Blue Owl, Cliffwater and others. Concerns focus on the $1.8 trillion sector’s exposure to software businesses vulnerable to AI disruption and tightening lending standards. The trend has forced funds to revise liquidity terms this year.

Carlyle said the cap protects liquidity, avoids forced sales and preserves portfolio integrity during volatility, while retaining capital to fund new loans as spreads begin to widen. The fund’s software exposure sits at about 12%; it values holdings daily using third‑party pricing and internal models. Investors will watch the fund’s ability to deploy capital amid widening spreads.