Investors in BlackRock's flagship private‑credit vehicle asked to cash out 13.3% of shares in Q2, up from 9.3% a quarter earlier. The firm will honor redemptions up to a 5% cap, processing withdrawals on a prorated basis. The surge reflects mounting pressure on the private‑credit market amid loan‑loss fears and AI‑related sector risk.

Peers reported similar strain: Blackstone’s Bcred fund faced 10% redemption requests, while Cliffwater’s $31 billion vehicle saw 17% demand. Most private‑credit funds limit outflows to 5% to avoid fire‑sale pressures, a policy BlackRock reinforced earlier this year. The HPS Corporate Lending Fund, however, still expects net inflows from new subscriptions and dividend reinvestments.

Despite growing investor wariness, institutional capital remains a net source of funding. BlackRock CEO Larry Fink told earnings callers that pensions and insurers continue to allocate to private credit, underscoring the asset class’s resilience despite heightened redemption activity.