Goldman Sachs President John Waldron criticized investment firms for failing to clearly market private credit funds to individual investors, who face redemption blocks as requests pile up. Waldron emphasized the "enormous growth" of private credit while noting retail investors now comprise about a fifth of the market, yet often misunderstand the true liquidity of these products.

Investors sought to pull more than $20bn from leading US private credit funds in the first quarter, with nearly half of these requests denied as funds limited withdrawals. Private credit funds marketed to individuals have attracted over $200bn in the past five years, often pitching themselves as "semi-liquid" despite their fundamentally illiquid nature.

US regulators have opened 401k retirement funds to the $1.8tn private credit market, while the IMF warned these vehicles could magnify macroeconomic shocks by increasing defaults and intensifying redemption pressure. Waldron noted problems in private credit would only become severe during a significant economic downturn, though prolonged geopolitical tensions could make investors more cautious.