Blackstone will maintain redemption limits on its Blackstone Private Credit Fund (BCRED) for a second consecutive quarter, after investors sought to withdraw $4.3 billion during the third quarter. The requested withdrawals represent approximately 10% of the fund's shares, matching the volume recorded in the prior period.
The fund will repurchase up to 5% of its shares in the quarter, a standard threshold for such investment vehicles. Blackstone's shares rose 5% in pre-market trading on Thursday following an initial decline, reflecting investor reaction to the fund's liquidity management strategy.
High-net-worth investors have intensified efforts to exit private credit funds, which provide exposure to illiquid assets with infrequent trading. The trend coincides with broader concerns over credit underwriting standards and the financial resilience of highly leveraged software companies amid the integration of artificial intelligence technologies.
In a statement to investors, BCRED noted that the redemption limits "provide liquidity to shareholders while preserving capital for new investments."
