Oaktree Capital Management just became the first major player in private credit to stop the bleeding. Redemption requests for its Strategic Credit Fund dropped to 4.5% of net assets in the second quarter of 2026, down from 8.5% the prior quarter.
The numbers behind the turnaround
Here’s what makes the 4.5% figure matter: Oaktree’s fund has a standard quarterly redemption cap of 5%. Falling below that threshold means the fund can now honor every single redemption request without restrictions, a luxury few peers in the semi-liquid private credit space currently enjoy.
In Q1 2026, the picture looked considerably grimmer. Redemption requests hit 8.5%, forcing the fund to pay out roughly $400 million. Oaktree needed help from its parent company, Brookfield Asset Management, which stepped in to facilitate part of the payout.
The broader private credit industry now exceeds $1.8 trillion in total assets. Semi-liquid retail vehicles, the specific product category where these redemption pressures have been most acute, have been under stress throughout early 2026 due to concerns about underwriting standards and liquidity mismatches caused by rapid capital inflows during the sector’s boom years.
