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Blackstone Limits Withdrawals to 5% as Redemptions Surge

6/4/2026

Summary

Blackstone Caps Redemptions

Blackstone Ltd capped withdrawals from its $79 billion Blackstone Private Credit Fund at 5% after investors sought to redeem about 10% in Q2.
The cap applies to the fund’s non-traded business development company structure.
Blackstone’s shares rose more than 5% on Thursday, June 4, after the announcement.
Partners Group restricted redemptions in its $8.6 billion private-equity fund after requests reached 9.8% of assets, prompting investors to scrutinize redemption policies across private-credit and private-equity vehicles.

Summary

Private Credit Redemptions

Blackstone Private Credit Fund had 2% NAV inflows in Q2 and a 3% NAV outflow.
Cliffwater’s $31.3 billion fund saw redemption requests rise to 17% of shares in Q2, up from 14% in Q1.
Oaktree Capital Management fulfilled all Q1 repurchase requests and did not cap Q2 redemptions.
First-quarter redemptions across eight large non-traded private credit vehicles totalled about $7.1 billion, the highest in the Reuters dataset.

Summary

Blackstone Meets Redemptions

Blackstone said its fund fulfilled all first-quarter redemption requests despite the 5 % repurchase threshold being exceeded.
The manager reported a liquidity position of over $15 billion (€12.9 billion) and called the fund’s capitalization solid.
Blackstone said the repurchase framework aligns with the expected redemption cycle while preserving capital for investment.
The fund is designed to generate stable income, provide downside protection during volatility, and deliver attractive risk-adjusted returns across cycles.

Summary

Redemptions Surge

Apollo, Ares, Blackstone, Blue Owl and KKR each fell over 5% on June 3 as market nervousness about private-credit liquidity intensified.
Redemption windows for non-traded private credit funds closed last Friday, reopening in June.
Bernstein Strategic Decisions Conference executives warned that private-credit redemptions will stay high through the year.
Analysts said the 5% withdrawal cap helps prevent forced asset sales and protects fund stability.

History

Historical Context

When Lehman Brothers failed in September 2008, the SEC halted money-market fund redemptions, triggering a $0.5 trillion sell-off and a temporary withdrawal cap. Vanguard, Fidelity and BlackRock reported sharp redemption spikes. Today Blackstone, Partners Group and Apollo use comparable caps on private-credit funds, limiting withdrawals to preserve liquidity and protect investor confidence.

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Blackstone Caps Redemptions

Blackstone Ltd capped withdrawals from its $79 billion Blackstone Private Credit Fund at 5% after investors sought to redeem about 10% in Q2.
The cap applies to the fund’s non-traded business development company structure.
Blackstone’s shares rose more than 5% on Thursday, June 4, after the announcement.
Partners Group restricted redemptions in its $8.6 billion private-equity fund after requests reached 9.8% of assets, prompting investors to scrutinize redemption policies across private-credit and private-equity vehicles.

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