Blackstone Gates 5% of $45B Private Credit Fund After 10% Redemption Surge
BX•Blackstone’s $45 billion Private Credit Fund saw Q2 redemption requests hit 10% of NAV (about $4.5 billion), leading to a 5% gating even as the fund holds $15 billion in liquidity. Monthly new commitments fell to $350 million in April–May, and writedowns on distressed loans contributed to Blackstone shares tumbling nearly 30% YTD.
1. Redemption Requests and Gating
Blackstone’s $45 billion Private Credit Fund saw redemption requests jump to 10% of NAV (about $4.5 billion) in Q2, breaching the 5% threshold and triggering a gating mechanism that limits repurchases to 5% of shares outstanding.
2. Liquidity and Capital Position
BCRED holds approximately $15 billion in cash and borrowing capacity, enabling it to meet gated withdrawal requests and support fund operations despite heavy outflows.
3. Commitment Decline and Writedowns
New commitments to BCRED fell to roughly $350 million per month in April and May, while the fund marked down distressed loans, including positions discounted more than 30 cents on the dollar.
4. Impact on Blackstone Shares
The combination of gating, reduced inflows, and writedowns has weighed on Blackstone’s stock, which is down almost 30% year to date, reflecting investor concerns over private credit exposure.
