$Blue Owl Capital(OWL.US)

BlackRock's impairment actions quickly triggered a chain reaction. Its $26 billion HPS corporate loan fund faced a 9.3% redemption request, ultimately deciding to set the repurchase cap at 5%. Subsequently, veteran interval fund manager Cliffwater also encountered a record 14% redemption request, forcing it to pull the "gate" and limit first-quarter redemptions to 7%.

"If Cliffwater is the canary in the coal mine and the first domino in the 'bank run' we foresee, I wouldn't be surprised," Rubric Capital's David Rosen had previously warned. His concerns proved not to be unfounded. Morgan Stanley's nearly $8 billion North Haven Private Income Fund followed suit, setting its redemption cap at 5% and returning only about $169 million, less than half of what investors requested.

What further shook the market was that JPMorgan has begun impairing the loan collateral of its private credit clients and limiting their credit lines. This move undoubtedly intensified the liquidity pressure on private credit funds.