BlackRock HLEND Caps 13% Redemptions; BDEBT Limits

capped redemptions for its flagship $25 billion HPS Corporate Lending Fund (HLEND) at 5% for the second consecutive quarter after investors sought to withdraw 13.3% of shares, while its smaller BlackRock Private Credit Fund (BDEBT) also enforced a 5% limit for the first time after 5.3% repurchase requests. This action by BlackRock, following a similar move by rival Blackstone Inc.

this quarter, highlights growing investor apprehension regarding the $1.8 trillion private credit market. Concerns stem from direct lenders' underwriting standards, exposure to AI-vulnerable software businesses, and the anticipated turning of the credit cycle, which industry leaders warn will lead to increased defaults as ultra-low rate borrowings mature.

JPMorgan Chase & Co. analysts are closely monitoring "net new redemptions" to assess market pressure.

HLEND has delivered a 10.2% annualized total return, and BDEBT has achieved 9.1% since their formations.