Cliffwater’s Corporate Lending Fund saw redemption requests hit roughly 17% of shares in Q2 2026, up from 14% in Q1. In response, the fund slashed its withdrawal cap to 5%, down from 7% the prior quarter. Blackstone’s BCRED fund, managing around $79B in assets, faced redemption requests of about 10%, translating to approximately $4.4B. Both funds imposed restrictions that left investors receiving pro-rata payouts well below what they actually asked for.
The gating problem
Withdrawal caps, sometimes called “gates,” are the mechanism fund managers use when redemption demand outstrips available liquidity. If a fund caps redemptions at 5% but 17% of shareholders want out, everyone gets roughly 29 cents on every dollar they requested.
This is the second consecutive quarter of outsized redemption demand in US non-traded private credit vehicles. Reports have indicated redemption requests as high as 41% in prior periods for some vehicles in this space, which puts the current figures in perspective.
Market fallout was immediate
