Private credit funds showed signs of stabilization in September as redemption requests from retail investors declined, according to reports from New York. Flagship funds managed by Apollo Global, Ares, and Black Rock reported falling withdrawal demands, while Blackstone's flagship fund remained steady. Despite the improvement, funds met less than half of investor redemption requests on average, limiting earnings growth at major asset managers.

Performance across the funds has improved after a rocky start to 2026, though private credit still underperformed the broader debt market, per Pitch Book data. The Ares Strategic Income Fund saw withdrawal requests drop to 13.1% in Q3 from 14.4% previously. Apollo's $15bn flagship debt fund reported a decline to 14.7% from 16.8%, and Black Rock's HPS corporate lending fund fell from 13.3% to 11.5%. Blackstone's $43bn vehicle maintained steady requests at about 10%.

The slowdown follows a surge in redemptions last year driven by investor concerns over falling interest rates and corporate defaults. By Q2 2026, funds capped redemptions at 5% of value. While the outlook is brightening, management fees are unlikely to rise and performance fees remain elusive, raising concerns about future fee earnings.