BlackRock's HPS Corporate Lending Fund, a private‑credit vehicle with $13bn of assets under management, has again restricted investor withdrawals. For the second straight quarter the fund capped redemptions, signalling growing liquidity strain in its portfolio of senior loans and structured credit. The restriction also aligns with peers that have introduced similar gates as investors seek greater certainty.

The fund honoured less than 40% of redemption requests, leaving many limited partners waiting for cash. Investors cite the curtailment as evidence that the fund’s loan‑to‑value ratios and limited secondary market options are squeezing liquidity. The squeeze also raises questions about the fund’s long‑term sustainability.

With redemption caps now a recurring feature, BlackRock faces heightened scrutiny from regulators and institutional clients demanding clearer liquidity buffers. Rating agencies could downgrade the fund, tightening future pricing. Investors will watch closely how the manager balances cash needs against return targets in upcoming reporting periods.