BlackRock private credit fund redemption requests ease in third quarter
BLK•Other BlackRock funds also showed easing outflows
Outflows from BlackRock's other smaller vehicles also showed signs of easing. Withdrawal requests at BlackRock Private Credit Fund fell to 4.58% in the third quarter, from roughly 5.3% in the prior quarter.
HPS Corporate Capital Solutions Fund saw withdrawal requests fall to 1.9%, from 4.7% in the prior quarter.
Blackstone BX.N kicked off the third-quarter redemption season for major U.S. non-traded private credit funds last week. Other vehicles are expected to release data throughout September.
Industry redemption pressure may be starting to ease
Wealthy individuals have retreated from non-traded private credit funds this year over concerns about lending standards and the potential impact of AI on software companies, a key borrower base for direct lenders. Although, latest data suggests redemption pressure may be starting to ease as asset managers work through a backlog of unfulfilled withdrawal requests.
HLEND, one of the largest U.S. non-traded private credit fund, has bought back roughly $1.7 billion of shares across three repurchase periods ended June 30, including about $600 million in the latest tender offer.
The fund said its underlying portfolio company performance remains strong and its portfolio remains highly diversified.
Since inception, its Class I shares have delivered a 9.9% annualized total net return through July 31, representing a 3.5% premium to broadly syndicated loan total returns.
BlackRock's flagship private credit fund saw fewer withdrawal requests
Sept. 11 (Reuters) - Asset manager BlackRock's BLK.N flagship private credit fund received fewer withdrawal requests in the third quarter than in the previous period, offering an early sign that redemption pressures across the industry may be easing.
