(Bloomberg) -- Blackstone’s behemoth private credit fund hit its redemption limits for the first time in its two-year history as investors yank capital from the $50 billion corporate lending vehicle.
BCRED, the non-traded business development company that has been instrumental in transforming the private credit market, saw redemptions worth around 5% of its outstanding shares in the quarterly withdrawal window that ended Nov. 30, according to a filing.
The withdrawals are the highest since the fund was established in January of 2021 and echoe a trend seen in BREIT, another Blackstone investment vehicle focused on real estate, which was forced to halt redemptions after withdrawal requests exceeded the quarterly limit.
Blackstone said it plans to honor 100% of repurchase requests from BCRED this quarter and that the fund has $8 billion of liquidity immediately available.
“BCRED is well positioned with 100% floating rate and 94% senior secured loans and zero payment defaults,” a spokesperson for the firm said in an emailed statement. “We saw net positive flows this quarter as investors sought compelling yields in high quality assets with little volatility.”
In less than two years, BCRED has grown into one of the world’s largest direct lending funds, which traditionally provide loans to risky mid-size companies and for leveraged buyouts.
Billions of inflows have allowed Blackstone to spearheaded an effort by asset managers to take on larger financings that would have traditionally been provided by banks and syndicated to investors in the leveraged loan and high-yield bond markets.
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