Blackstone has capped redemptions on its flagship private credit fund, the Blackstone Private Credit Fund (BCRED), after investors requested withdrawals totaling roughly $7 to $8 billion-representing 10% of the fund's shares.
The firm will only honor 5% of those requests in the second quarter of 2026, leaving half of the investors waiting for their money.
In the first quarter, Blackstone managed to fulfill the full 7.9% in redemption requests by using a higher cap and contributions from the firm and its employees. But with requests jumping to 10%, Blackstone defaulted to the standard 5% quarterly cap.
BCRED, the largest semi-liquid private credit vehicle, holds approximately 97% senior secured loans. Assets under management have already dropped from $82 billion to $79 billion.
Blackstone is not alone. Competitors Apollo, Blue Owl, and Oaktree have faced similar pressures on their semi-liquid funds.
Evercore analysts say the 10% redemption level is manageable at the current scale, but they flagged decelerating gross inflows as a more worrying trend. When fewer new dollars come in, even moderate redemptions become harder to absorb without selling assets at unfavorable times.
Blackstone framed the cap as a protective measure to match liquidity with loan repayment cycles. The market reacted positively: Blackstone shares rose about 8% on the news.