Private credit redemption pressure eases as fund performance improves

Private credit funds showed signs of stabilization in September as redemption requests eased and performance improved following a difficult start to the year. Major managers like Apollo, Ares, BlackRock, and Blackstone reported lower withdrawal rates, suggesting reduced anxiety over corporate defaults. However, recovery remains incomplete; redemption limits are still in place, with less than half of requested withdrawals fulfilled on average. Sluggish new investment and weaker asset growth continue to pressure management and performance fees for alternative asset managers.