Shares of banks and other financial institutions fell as private-credit fears resurfaced.
Shares of Swiss investment firm Partners Group plunged after it capped redemptions in an $8.6 billion private-equity fund, due to a surge in requests from clients for their money back. Partners had previously warned that volatility in private-credit funds was spilling over into private equity. While the former are typically pools of investor capital that is lent to corporations, the latter are more conventional buyout funds.
Separately, Bloomberg News reported that redemptions were capped at the $31 billion Cliffwater Corporate Lending Fund in the second quarter.
The echoes of previous redemption scares weighed on shares of the U.S. private-credit firms, including Blue Owl, Blackstone and Ares Management.
In recent weeks, optimism about an end to war and, hence, to inflationary pressures on Treasury yields have eased pressure on distressed areas of credit markets.
