[Randolph]

Here you go Milt.

By Matt Wirz
Updated June 4, 2026 8:37 am ET

Investors are trying to pull more money from the biggest private-credit fund in the world.

Investors in Blackstone’s flagship private-credit fund, known as Bcred, asked to redeem 10% of their shares in the second quarter, up from about 8% in the first quarter.

Blackstone will limit redemptions from the $79 billion fund to 5%, a reversal from its strategy in March when it opted to pay the full amount requested. The about face highlights rising financial strain on managers of large private-credit funds marketed to individual investors who continue to ask for their money back.

Redemption announcements have been knocking down share prices of Blackstone BX -4.03%decrease; red down pointing triangle
and its competitors who manage large private-credit funds. Stocks of investment firms tumbled earlier this week after Partners Group disclosed withdrawal requests for about 10% from one of its private-equity funds. Analysts expect their share prices to remain under pressure until the pace of redemptions abates.

Shares of Blackstone rose about 2% in premarket trading Thursday, and the firm said the redemption requests slowed in the second half of the quarter.

“BCRED remains well capitalized, and repayments [from loans] and inflows have outpaced shares repurchased,” the firm said Thursday.

Redemptions across the industry soared in the first quarter, when firms like BlackRock, Blue Owl, and Ares were forced to impose limits on how much was taken out. The amount of withdrawal requests have ranged from around 10% to the 22% that Blue Owl faced in the first quarter for its then-$36 billion flagship fund.

Blackstone’s withdrawals were being closely watched as an early second-quarter gauge on whether investors continued to race for the exits.
Cliffwater said earlier this week that investors requested to redeem 17% of the shares in its $31 billion fund in the second quarter.
Blue Owl and most other managers will report their second-quarter redemptions over the next month.

Wealthy individuals piled into private-credit funds—known as business-development companies, or BDCs—which invest in high-interest loans to midsize companies and distribute most of the income they collect to shareholders via dividends. The boom ended this year when investors turned bearish over increasing loan defaults and the potential for future losses from lending to software companies

The Blackstone fund is the largest of the bunch, surging to a high of $82 billion at the end of 2025, but it is now shrinking, cutting into the fees the firm can collect. The 5% redemption in the second quarter will amount to about $2.2 billion based on the fund’s net asset value. The fund received about $1 billion of inflows in the second quarter.

Most private-credit funds marketed to individuals in recent years, including Bcred, have built-in redemption limits of 5% to avoid forced liquidations of the hard-to-trade loans they own.

Competitors like Apollo Global Management, Ares Management and BlackRock stuck with the 5% cap.

Blackstone opted for a bigger payout in the first quarter to reassure clients, a strategy Blue Owl and Cliffwater also adopted. All three firms have now reverted to the 5% cap after investor requests were high again.