Blackstone (NYSE:BX) kept its flagship private credit vehicle’s quarterly withdrawal limit unchanged at 5% after investors again asked to redeem more shares than the fund is willing to buy back.
Investors sought to tender roughly 10% of shares during the third quarter for the $77.2 billion Blackstone Private Credit Fund (BCRED), a level similar to the prior quarter, Reuters reported, citing Blackstone’s regulatory filing.
“We believe this provides shareholder liquidity while preserving capital to deploy into new investments,” BCRED said in an investor update.
BCRED received $4.3 billion of repurchase requests in the third quarter, and some of that demand reflected investors who had already tried to redeem in the second quarter. In the prior quarter, the fund satisfied about half of the $4.5 billion in requests, leaving $2.3 billion outstanding, of which some was resubmitted in the latest tender.
Blackstone said BCRED remains well capitalized, pointing to loan paydowns and inflows running ahead of share repurchases, according to Reuters. The fund also said "investors who sought liquidity in Q2 and Q3 will have received an estimated 75% of their requested capital."
During the quarter, BCRED recorded net outflows of about 3% as new purchases slowed, even though it still brought in close to $750 million of inflows, Reuters reported.
Blackstone’s other private-wealth offerings showed better fundraising momentum versus the second quarter, based on an investor update cited by Reuters.
Redemption windows at major U.S. non-traded private credit funds for the third quarter began closing this week, while tender offer windows at other vehicles are set to expire throughout the month.
Redemption demand at BDCs has accelerated sharply this year, as investor withdrawal requests increasingly outpace actual payouts.
Actual and reported redemption requests roughly doubled in the fourth quarter of 2025 from the prior quarter, but remained broadly in line with payouts throughout the year, according to an August 2026 report from Moody’s Analytics. That relationship broke down in 2026, with average first-quarter requests rising to 8.9% versus payouts of 4.7%, followed by requests of 10.5% against payouts of just 4.4% in the second quarter.
"Rising credit risk and rising redemption pressure are moving together and on the same timeline, in an opaque segment of the market. Whether that combination stays a liquidity story specific to fund structures, or becomes one of the first visible symptoms of broader, real credit deterioration, is likely to be one of the more consequential open questions in U.S. corporate credit through the rest of 2026," the report stated.
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