Blackstone’s BCRED met only 5% of requests in a June quarterly window, as elevated withdrawals, rising defaults and broader competition for capital pressure semi-liquid private credit funds.
Blackstone’s flagship private credit fund, BCRED, again capped investor withdrawals after redemption requests reached 10% in a quarterly window that opened June 5, with the fund saying it would meet only 5% of requests. The move highlights liquidity pressures in semi-liquid private credit vehicles, which invest in less-liquid loans while offering limited periodic withdrawals. The episode comes amid broader stress in the $1.8 trillion U.S. private credit market: BCRED faced a record 7.9% redemption last quarter, Cliffwater’s flagship fund reported 17% withdrawal requests, and Partners Group blocked exits. Credit conditions have also weakened, with Fitch saying private credit defaults have risen to a record 6% and PIMCO CIO Daniel Ivascyn warning that a sustained credit default cycle has begun. The newer report describes the fund as $45 billion, while the older report cites the prior quarter’s 7.9% redemption and broader market pressures.