Private credit funds marketed to wealthy investors are facing renewed scrutiny in the second quarter as redemption pressures continue to weigh on the sector, according to early fund filings reviewed by Reuters.Investors and analysts are closely monitoring withdrawal requests at major U.S. non-traded private credit funds, following the closure of redemption windows last Friday. The latest filings suggest concerns surrounding exposure to software-related assets, valuation practices, and limited transparency within the private credit market continue to influence investor sentiment.According to Reuters' review of eight large private credit vehicles, redemption requests totaled approximately $7.1 billion during the first quarter, marking the highest level in the dataset. Slower fundraising activity and June redemption deadlines have intensified focus on whether investor demand for liquidity remains elevated.Among the industry's largest players, Blackstone reported that its Blackstone Private Credit Fund (BCRED) limited withdrawals during its second-quarter tender offer after investors sought to redeem shares equivalent to 10% of the fund's outstanding stock. The requests exceeded the fund's quarterly repurchase cap of 5%, prompting the restriction.BCRED experienced capital inflows amounting to roughly 2% of net asset value during the quarter, resulting in a net outflow of about 3% of NAV. The fund indicated that repayments and new inflows exceeded the amount repurchased through redemptions. While BCRED had fulfilled all withdrawal requests during the first quarter, demand for repurchases moderated later in the second-quarter offer period, with requests from U.S.-based investors declining compared with the previous quarter.Cliffwater also faced elevated redemption demand. In a shareholder letter, the firm disclosed that investors in its $31.3 billion Cliffwater Corporate Lending Fund requested withdrawals equal to 17% of outstanding shares during the second quarter. However, the fund limited redemptions to 5% under its interval fund structure.The second-quarter redemption requests represented an increase from the first quarter, when investors sought to redeem 14% of shares and the fund permitted repurchases of up to 7%.The Cliffwater Corporate Lending Fund operates as an interval fund, a structure that periodically offers investors opportunities to sell shares back to the fund. Its portfolio includes approximately 4,000 investments, ranging from direct corporate loans to holdings in private credit funds managed by other investment firms.The latest redemption data underscores the challenges facing the rapidly growing private credit industry as investors reassess liquidity needs and portfolio risks amid heightened scrutiny of asset valuations and portfolio transparency.