The private credit market is currently facing significant liquidity challenges, with numerous firms limiting investor redemptions. Apollo Global Management's Debt Solutions fund, for instance, received redemption requests totaling $2.4 billion, or 16.8% of its net asset value, in Q2 2026 but could only honor 5% of shares, or approximately $700 million in gross outflows. This follows a similar trend seen in other major private credit funds.
Blackstone's BCRED fund, valued at over $79 billion, also saw repurchase requests amounting to 10% of shares outstanding for the quarter ending June 30. Blue Owl Capital experienced massive withdrawal requests of 22% and 41% from two of its funds in April, forcing the firm to largely block exits. Other firms, including Partners Group, Morgan Stanley's North Haven Private Income Fund, and HPS (acquired by BlackRock), have also had to throttle withdrawals, with some hitting as high as 17% (Cliffwater) and 40.7% (Blue Owl's OTIC fund).
Investors collectively looked to pull roughly $13 billion from over a dozen funds in the most recent quarter, according to Bloomberg estimates, but only about two-thirds of these requests were met due to typical quarterly withdrawal caps of 5% to 7% of net assets. This situation has exposed a fundamental mismatch for wealth-channel clients who were promised quarterly liquidity for assets that are inherently illiquid. While managers argue these limits are necessary to deploy capital effectively and protect long-term investors, the repeated caps are making the trade-off of higher yields for reduced liquidity harder to ignore.
The acceleration of redemption requests has been rapid. Apollo, for example, saw its redemption requests jump from 2.5% in Q3 2025 to 16.8% in Q2 2026. This sudden increase is leading to a growing queue of investors waiting to exit, a situation structurally similar to a bank run, albeit slowed by the quarterly gates. The industry's promise of smoother access is being re-evaluated as wealth-channel investors discover that liquidity is conditional on not everyone wanting to exit at the same time.
Forecasts suggest that funds like Blue Owl's OCIC and OTIC may see redemption rates of 28.5% and 52.9% respectively for Q2 2026, implying continued pressure. This period of elevated redemptions could extend through late 2026 or early 2027, challenging the notion of private credit as a truly liquid investment for retail investors.
