Blackstone will limit investor withdrawals from its flagship private credit fund for the third consecutive quarter as redemption requests remain elevated.
The Blackstone Private Credit Fund, the world’s largest private credit vehicle, received withdrawal requests totaling $4.3 billion during the third quarter, equivalent to 10% of its shares. The fund will repurchase 5% of its shares in the quarter, a standard threshold for such investment vehicles. Withdrawal requests matched the level seen in the prior quarter, according to a regulatory filing.
The fund’s decision to cap redemptions follows sustained demand from investors seeking liquidity from vehicles tied to infrequently traded assets. The trend reflects growing caution among wealthy individuals after years of exposure to private credit and other alternative investments.
Blackstone shares rose 0.6% in premarket trading on Thursday following the announcement, recovering from an initial decline. The company stated in an investor update that the partial repurchase program aims to balance shareholder liquidity with capital preservation for new investments.
The withdrawal pressure coincides with broader concerns over lending standards and the ability of software companies with significant debt from direct lenders to navigate potential disruptions from artificial intelligence.
