Investors are rapidly exiting BlackRock’s flagship private credit vehicle, the HPS Corporate Lending Fund (HLEND), raising concerns about liquidity in the sector. Redemption requests surged to 13.3% of outstanding shares in the second quarter of 2026, a sharp increase from 9.3% in the first quarter.
The fund enforces a strict quarterly repurchase cap of 5%. With requests nearly triple that limit, BlackRock will fulfill approximately $620 million of the total demand on a prorated basis. This means investors requesting exits will receive roughly 38 cents for every dollar asked, with the remainder locked in the fund.
This trend mirrors broader pressures across the private credit industry. Blackstone’s BCRED and Cliffwater’s funds have also reported high redemption rates, triggering similar caps. Investors cite valuation uncertainties, particularly in software sectors, and demands for greater pricing transparency as key drivers.
While the fund remains solvent, this liquidity mismatch signals a recalibration of investor confidence. The structural cap is designed to protect remaining shareholders from forced asset sales, but it may inadvertently encourage preemptive redemption requests in future quarters.