BlackRock (BLK) limits withdrawals at private credit fund as redemptions mount, Reuters reports
- BlackRock's USD 26bln HPS Corporate Lending Fund received withdrawal requests worth USD 1.2bln in the Q1, or roughly 9.3% of its net asset value.
- HPS told investors it would pay out USD 620mln as part of the quarterly redemption, hitting a 5% threshold that allows the asset manager to restrict further outflows
Context
BlackRock's move to limit withdrawals at its private credit fund amid rising redemptions signifies increasing investor anxiety, particularly as 9.3% of net assets were requested for withdrawal. This action not only reflects challenges within the credit market but may also have ripple effects on investor sentiment across asset classes, particularly in Forex and equities, if perceived as indicative of broader liquidity concerns.
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