BlackRock $26 Billion Private Credit Fund Limits Withdrawals

BlackRock Inc. curbed withdrawals from one of its biggest private credit funds after client requests for redemptions spiked, the latest sign of investor anxiety about the $1.8 trillion private credit industry. The firm’s $26 billion HPS Corporate Lending Fund, one of the largest non-traded business development companies, said in a statement Friday that shareholders requested 9.3% of their shares, but management decided to cap the repurchases at 5%. While the total value of shares would have been about $1.2 billion, according to Bloomberg calculations, investors will get back about $620 million that the fund held at year-end. It’s the clearest instance of gating withdrawals among major private credit funds since late last year, when investors grew increasingly skittish about the asset class after high-profile collapses raised concerns about lending standards. Many firms had thus far opted to meet the higher redemption requests or looked to repay investors by other means. James Crombie, Bloomberg News Senior Editor for Credit, joins Bloomberg Businesweek Daily to discuss. He speaks with Carol Massar and Tim Stenovec.
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