Moody’s says U.S. banks had nearly $300 billion in loans to private credit funds and $285 billion to private equity funds as of June 2025, as major firms moved to manage liquidity pressure.
Wall Street banks and private credit managers tightened lending and redemption terms as concerns grew over liquidity and risk in the private credit market. Moody’s said U.S. banks had nearly $300 billion of loans to private credit funds and $285 billion to private equity funds as of June 2025. The broader pressure comes as BlackRock’s HLEND faced $1.2 billion in withdrawal requests in the first quarter and Morgan Stanley capped redemptions after investors sought nearly 11% in outflows. JPMorgan, Morgan Stanley, BlackRock, Blackstone, Blue Owl Capital, and Cliffwater were cited among firms taking steps to manage liquidity strain.