Redemptions Ease at KKR's Private Credit Fund as Rivals Cap Withdrawals

KKR's private credit fund, tailored for international investors, has seen a decrease in redemption requests, despite a broader trend of capital withdrawal across the North American private credit sector. KKR-Income Trust I, the firm's European, Middle East, Africa, and Asia-Pacific-focused fund, received withdrawal requests equivalent to 2.5% of its net asset value in Q3.

This mirrors Q2, during which the fund restricted redemptions to 5%, having received $10.5 million in withdrawal requests. The fund intends to fulfill these and subsequent Q3 requests, totaling $34.7 million, as indicated in a Bloomberg report. KKR-Income Trust I experienced a 1.9% increase in the second quarter, with an aggregate average net asset value of around $1.4 billion by the quarter's end.

The fund's annualized net total return since its launch stands at 10.3%. In the first half of 2026, investors attempted to withdraw over $14.5 billion from numerous private credit funds, but only $8.6 billion was actually released, leaving substantial capital tied up. In response to mounting concerns about asset quality and valuations, particularly in software lending, several private credit funds, including Cliffwater LLC's flagship fund, have been imposing redemption caps at 5%.

Cliffwater Corporate Lending Fund disclosed it would accommodate about one-third of the 16% of shares requested for redemption. Likewise, Blackstone's private credit fund also witnessed heightened redemption requests this period, subsequently capping the withdrawal limit at 5% after investors sought to tender nearly 10% of shares in the Q3 of the $77.2 billion Blackstone Private Credit Fund.

Blackstone's fund received $4.3 billion in repurchase requests in the Q3, a portion of which was from investors who had already attempted to redeem in the Q2. In the previous quarter, the fund addressed approximately half of the $4.5 billion in requests, leaving $2.3 billion outstanding, some of which was resubmitted in the latest round.