Story perspectives

Investment Banks Back Private-Credit Funds Amid Redemption Struggles

3/19/2026

Summary

Story summary

Investment banks are financing redemptions for private-credit fund managers, despite declining sentiment toward nonbank lending.
Blue Owl Capital, a private-credit fund manager, and New Mountain Capital, a private-credit fund manager, often sell assets on the secondary market to meet redemption requests.
Interval funds and business development companies use bank credit lines to manage outflows.
This financing helps fund managers honor investor withdrawals and maintain liquidity.

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Story summary

Investment banks are financing redemptions for private-credit fund managers, despite declining sentiment toward nonbank lending.
Blue Owl Capital, a private-credit fund manager, and New Mountain Capital, a private-credit fund manager, often sell assets on the secondary market to meet redemption requests.
Interval funds and business development companies use bank credit lines to manage outflows.
This financing helps fund managers honor investor withdrawals and maintain liquidity.