Blackstone's flagship private credit fund is capping investor withdrawals at 5% of shares outstanding after redemption requests reached 10% in the second quarter — double its standard limit and up from roughly 8% in the first quarter.
Investors sought to pull 10% of shares in the second quarter, double the fund's standard 5% repurchase limit
Bloomberg / Getty Images
Blackstone's flagship private credit fund is capping investor withdrawals at 5% of shares outstanding after redemption requests reached 10% in the second quarter — double its standard limit and up from roughly 8% in the first quarter.
The fund, known as BCRED, holds $79 billion in assets. The total value of shares investors sought to pull from the fund in the second quarter came to approximately $4.4 billion, according to The Wall Street Journal. At the 5% cap, the amount Blackstone will pay out comes to roughly $2.2 billion, the company said.
That stands in contrast to Blackstone's approach earlier this year, when the firm chose to honor the full $3.8 billion in first-quarter withdrawal requests — a figure equivalent to 7.9% of shares — by temporarily lifting its cap and drawing on employee capital to make up the difference, according to CNBC. Despite taking in about $1 billion in new capital during the quarter, the fund still posted a net outflow of around 3% of net asset value, a figure the company said was in line with the previous quarter.
According to a shareholder letter, demand for redemptions eased as the offer period progressed, with domestic withdrawal volumes coming in beneath what the fund saw in the first quarter. The fund's portfolio is marked at 96.1 as of April 30, 2026, the company said, adding that the bottom 5% of the private debt portfolio is marked at 68.3.
Since its 2021 inception, BCRED has generated a 9.3% annualized total return for Class I shares and currently pays a 10.0% distribution rate for Class I shares, the company said.
The cap at BCRED comes as withdrawal pressures have spread across the private credit industry. The move puts Blackstone in line with peers such as Apollo Global Management, Ares Management, BlackRock $BLK, and Blue Owl, which had each enforced the standard 5% ceiling when their own first-quarter redemption windows closed, according to Reuters. Separately, Cliffwater disclosed that its $31 billion fund faced second-quarter redemption requests totaling 17% of shares, The Wall Street Journal reported.
Blackstone stock rose about 2% in premarket trading on Thursday.
Join 500,000+ readers who start their day with Quartz.
By subscribing, you agree to our Terms of Service and Privacy Policy.