Blackstone Private Credit Fund Limits Redemptions Amid Withdrawal Surge

Blackstone’s $79 billion flagship private credit fund has become the latest large non-traded vehicle to limit redemptions after a surge in withdrawal requests during the second quarter, underscoring the persistent liquidity pressure facing the broader non-traded private credit market.

Blackstone Private Credit Fund (BCRED), disclosed in a regulatory filing Thursday that repurchase requests came in at approximately 10% of shares outstanding during the second quarter. The fund will fulfill requests representing approximately 5% of shares outstanding; the standard quarterly cap under its redemption program.

The development marks a step back from the first quarter, when BCRED raised its repurchase cap above the standard 5% threshold to accommodate the 7% of shares outstanding requested at that time. Capital inflows during the second quarter were approximately 2% of net asset value, resulting in a net outflow of roughly 3% of NAV — consistent with the net outflow pattern recorded in the first quarter.

Despite the elevated redemption activity, BCRED emphasized its financial position remains sound. The fund said it is well capitalized, that repayments and inflows have outpaced shares repurchased, and that it maintains substantial available liquidity of more than $15 billion comprised of cash and undrawn borrowing capacity.

The redemption pressure at BCRED reflects a broader trend across the non-traded private credit landscape. Several large perpetually non-traded business development companies have experienced elevated withdrawal requests in recent quarters as investors reassess their alternatives allocations amid higher interest rates, uncertainty around valuations and growing competition from liquid fixed income products offering attractive yields.