Blackstone Private Credit Fund Caps Withdrawals in Fresh Test for Strained Market

Blackstone has placed a cap on withdrawals from its $77.2 billion Blackstone Private Credit Fund (BCRED) for the third consecutive quarter, as investors continue to request to pull money out of the fund. In the latest quarter, investors asked for withdrawals amounting to 10% of the fund's shares, which would be equivalent to $4.3 billion in equity.

However, Blackstone has limited withdrawals to 5% of the fund's shares, a common practice for semi-liquid funds. The fund fulfilled around half of its redemption requests in the second quarter, leaving a backlog of $2.3 billion in unfulfilled requests. The push for withdrawals is attributed to concerns over an AI bubble and the potential impact on software companies that private credit funds lend to.