Blackstone has restricted withdrawals at its $79 billion flagship private credit fund, BCRED, after second-quarter redemption requests jumped to 10% of total shares. Unlike previous quarters, where the firm used capital injections to meet demand, the fund has now enforced its 5% quarterly cap. Blackstone maintains that the structure remains a trade-off, offering long-term outperformance in exchange for periodic liquidity constraints.

Simultaneously, Swiss manager Partners Group is grappling with similar pressures. After shares hit a six-year low, the firm confirmed that its $16 billion Delaware-based fund saw requests reach 6%, exceeding its 5% limit. Three additional evergreen funds, representing $9.7 billion in assets, are also facing redemption requests ranging between 3.5% and 5%. The firm’s struggle highlights the broader contagion affecting open-ended structures, which have become increasingly popular for their flexibility but are now struggling to reconcile investor demand for cash with the illiquid nature of private market loans.