Blackstone Inc. is working through a backlog of redemption requests from investors in its flagship private credit fund. President and Chief Operating Officer Jon Gray told Swiss newspaper NZZ that investor confidence will be rebuilt over time and inflows will return. "There's a lot of noise, a lot of critics, the town criers are proclaiming a global crisis – and then nothing happens," Gray said.

The $77 billion Blackstone Private Credit Fund limited redemptions for a second consecutive quarter earlier this month, allowing investors to withdraw only half of the 10% they had requested. Gray said operating income in Blackstone's private loan portfolio grew by double digits last quarter, though there is a portion with more "weakness."

Gray noted that the weakest 5% of the portfolio was valued at approximately 60% of nominal value, while the entire senior loan portfolio in the BCRED fund is valued at approximately 95%. He said demand remains strong for private equity and infrastructure products despite reduced interest in private credit.