BlackRock Caps HPS Fund Withdrawals at 5% After 9.3% Redemption Demand
BlackRock has capped redemptions at 5% for its HPS Corporate Lending Fund after shareholders sought to withdraw 9.3% of fund shares. The move follows other private credit funds’ limits amid growing liquidity pressure in the $1.8 trillion market, contributing to BlackRock shares sliding this week.
1. BlackRock Caps HPS Corporate Lending Fund Withdrawals
BlackRock has capped quarterly redemptions at 5% for its HPS Corporate Lending Fund after investors sought to redeem 9.3% of shares, reflecting mounting liquidity strain across retail private credit vehicles.
2. Share Slide and Investor Concerns
BlackRock shares dipped on Thursday as renewed stress in private credit prompted investors to reassess exposure, particularly to loans in software and other sectors facing potential AI-driven disruptions.
3. Rival Funds Limit Redemptions
Cliffwater capped its $33 billion Corporate Lending Fund at 7% after 14% of shares were requested for redemption, while Morgan Stanley similarly restricted withdrawals, underscoring industry-wide liquidity measures.