Blackstone's flagship private credit fund restricts investor redemptions for the first time, joining the ranks of funds with withdrawal limits

Odaily Odaily News Blackstone Group (BX.N)'s flagship private credit fund has, for the first time, imposed restrictions on redemption requests after investors sought to redeem 10% of their shares. It becomes the latest fund to tighten redemption caps amid a sustained wave of investor withdrawals. According to a filing on Thursday, the $79 billion Blackstone private credit fund has informed shareholders that it will only fulfill redemption requests for 5% of their shares.

Last quarter, the fund allowed investors to redeem a record 7.9% of their shares as executives used their own funds to help with financing. Jim Zelter, co-president of Apollo Global Management, stated that after previous redemptions were restricted, investors are intensifying their efforts to withdraw funds, which could lead to more "turmoil" in the non-traded BDC (Business Development Company) sector. (Golden Ten)