When investors want out of a fund faster than the fund can let them leave, that’s not a line at the door. That’s a fire alarm.
BlackRock’s HPS Corporate Lending Fund, known as HLEND and valued at roughly $25 billion, received redemption requests totaling 13.3% of its assets during the first quarter of 2026. The problem: the fund’s quarterly redemption cap sits at just 5%, meaning HLEND will only buy back about $1.25 billion of the amount investors actually wanted to pull.
It wasn’t the only BlackRock vehicle feeling the heat. The $2.7 billion BlackRock Private Credit Fund, or BDEBT, saw redemption requests hit 5.3% of outstanding shares. BDEBT agreed to repurchase roughly $83 million, representing 5% of its assets.
The math doesn’t math
Here’s the thing about non-traded private credit funds. They invest in illiquid loans, the kind that can’t be sold on a whim, but they accept money from investors who eventually want liquidity. To manage this fundamental mismatch, funds impose quarterly redemption caps, typically around 5% of net asset value.
