Private Credit Funds Face Significant Withdrawal Requests

Private credit funds experienced over $20 billion in withdrawal requests during the first quarter, as several managers imposed limits on repurchases. According to NS3.AI, Barings Private Credit Corp., Apollo Debt Solutions, and Ares Strategic Income Fund each restricted withdrawals after redemption requests exceeded 11% of shares. Blue Owl reported that investors aimed to redeem 21.9% of Blue Owl Credit Income Corp. and 40.7% of Blue Owl Technology Income Corp., with both funds capping repurchases at 5%. Moody’s has revised the outlook for Blue Owl Credit Income and the broader BDC sector to negative.