Several of the biggest private credit funds are now telling investors they can’t have their money back — at least not all of it, and not right now. BlackRock just capped withdrawals at 5% for its $26 billion HPS Corporate Lending Fund after redemption requests nearly doubled that limit. That’s not a minor hiccup. That’s a gate slamming shut.
Private credit funds have always had redemption limits baked in — typically 5% of net asset value per quarter — designed to prevent fire sales on illiquid assets. But those guardrails are being tested hard right now. Retail investors are pulling money from the largest funds, and the quarterly limits are straining under the pressure. The industry isn’t operating like normal. Not even close.
So what’s spooking everyone? A few things. There’s mounting fear over heavy software exposure and what AI disruption could do to those borrowers. Fitch already flagged three defaults in the software sector. Distributions have declined. Buyout fund DPI remains low. And some high-profile blowups haven’t helped calm anyone’s nerves. Investors are rattled, and the exits are getting crowded.
Evergreen funds — the semi-liquid vehicles pitched heavily to private wealth clients — have ballooned to $644 billion in assets as of June 30, 2025. That’s up 28% from end-2024 and a 45% jump year-over-year. Nearly $520 billion sits in BDCs and interval funds. Big numbers. Big redemption exposure.
The secondary market is picking up the slack, sort of. Credit secondaries fundraising hit a record $16 billion in the first three quarters of 2025, blowing past the prior three years combined. Coller Capital and Pantheon Ventures each raised over $5 billion. Liquidity exists — but at a price. Distressed and opportunistic credit funds have raised over $100 billion in anticipation of exactly these kinds of market dislocations, positioning themselves to absorb assets as traditional funds face redemption pressure.
Meanwhile, Apollo is moving toward monthly NAV reporting for its $940 billion in assets, with daily pricing potentially on the horizon. JPMorgan has curtailed lending to private credit and is reassessing loan values. The industry is recalibrating fast. Users experiencing issues accessing fund data through financial platforms should ensure JavaScript is enabled and cookies are not blocked in their browser settings.
And Bitcoin, benefiting from the chaos spilling out of traditional alternatives, is surging as capital looks for somewhere else to go. Unlike private credit funds, Bitcoin operates on a decentralized blockchain network that allows investors to retain direct control over their assets without redemption gates or withdrawal restrictions.
