⚠️ BlackRock restricts withdrawals from credit fund to $26b (Bloomberg)

Investors have started to massively pull money out of BlackRock’s HPS Corporate Lending Fund, which invests in the private credit market.

▪️ Investors requested withdrawals of 9.3% of assets
▪️ Managers allowed only 5% to be withdrawn
▪️ Instead of ~$1.2 billion, investors will receive about $620 million

Investor anxiety is growing in the $1.8 trillion private credit market.

Following the news, BlackRock’s shares dropped more than 7%, and other private credit sector managers also came under pressure.

@Cryptoz