Private Credit’s Resurgent Redemptions Shatter Short-Lived Calm

Private credit’s very bad month started on March 2, when Blackstone Inc.’s BCRED revealed what was at the time its largest investor redemptions ever. It was bookended on April 2, when Blue Owl Capital Inc. said two of its funds faced massive withdrawal requests of 22% and 41%, forcing the firm to largely block the exits.

Then, for a while, it was relatively quiet. Shares modestly rebounded. There was talk of cleaning up portfolios; the industry concerns being overblown; getting knocked down but becoming stronger for it.

But as the calendar turned to June 2, the drumbeat of dread ...