🚨Multiple private credit funds on Wall Street are getting dragged into a redemption panic, and the Federal Reserve has already begun requiring U.S. banks to explain their private credit risk exposures—

🔺BlackRock’s $26 billion fund faced about $1.2 billion in redemptions, and ultimately only paid out approximately $620 million.
🔺Blackstone restricted redemptions, and some private credit funds only paid out about 70% of the requested amount.
🔺Cliffwater’s flagship private credit fund recently faced a large volume of redemption requests.
🔺Blue Owl announced again limiting the redemption size of one of its funds, causing investors trying to exit to actually receive less than a quarter of their requested amount.
🔺Shiling Asset Management said that due to the recent surge in redemption requests, they will only fulfill 11% of the redemption amount investors want to redeem.
The global private fund market is now over $1.7 trillion, and it is deeply tied to the mainstream financial system;
Private loans are typically bilateral agreements, and they lack standardized pricing mechanisms—by their nature, they are almost illiquid, forcing investors to dump stocks in the public market or sell the underlying assets at distressed prices.
What’s terrifying is that many investors probably don’t even realize they’ve already been indirectly involved.
This is Wall Street—if you put it in the domestic P2P industry from back then, it would definitely be classified as a precursor to a blow-up, right?