Shares of major US alternative asset managers dropped in premarket trading on June 3 as investors prepared for what could be an ugly round of second-quarter redemption updates from non-traded private credit funds.
Blue Owl Capital, Apollo Global Management, Ares Management, and Blackstone all faced selling pressure. The catalyst: redemption windows for many private credit funds closed the previous Friday, and the early data trickling out is not reassuring.
The numbers are getting worse
Cliffwater became the first major manager to report its Q2 figures. Redemption requests for its $31.3 billion flagship private credit fund climbed to 17%, up from 14% in the first quarter.
In Q1, some funds saw withdrawal requests spike dramatically. Blue Owl’s flagship $36 billion private credit fund received 22% redemption requests. Its $6 billion technology-focused vehicle was hit even harder, with 41% of investors asking for their money back.
