A wave of investor redemptions is crashing into the structural reality of semi-liquid funds, and the biggest names in asset management are slamming the gates shut. An estimated $13 billion in withdrawal requests hit private credit funds during the first quarter of 2026. Roughly $4.6 billion of that money is now effectively trapped, stuck behind redemption caps that fund managers are enforcing to avoid fire sales on illiquid assets.
The gating spree
BlackRock’s $26 billion HPS Corporate Lending Fund absorbed about $1.2 billion in redemption requests during Q1, representing 9.3% of net asset value. The firm’s response was to cap quarterly payouts at 5%. In plain terms: nearly half of the investors who wanted out were told to wait.
BlackRock was far from alone. Apollo Global Management managed to honor only 45% of withdrawal requests in one of its vehicles. Ares Management faced redemption demands totaling 11.6% of its $10.7 billion Ares Strategic Income Fund, then promptly capped outflows at 5%.
Blue Owl Capital went further, imposing withdrawal limits across multiple retail-focused funds. One fund saw a permanent halt on redemptions entirely. Morgan Stanley restricted outflows from its North Haven Private Income Fund after investors attempted to pull roughly 11% of the fund’s value.
