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BlackRock defended the move as consistent with how it has long managed liquidity in the flagship direct lending product, known as HLEND.
BlackRock shares fell more than 7% in New York trading, mirroring steep declines at rival alternative asset managers.
BlackRock Inc. moved to restrict withdrawals from one of the private credit industry’s largest funds after client redemption requests surged well beyond permitted levels.
The firm’s $26 billion HPS Corporate Lending Fund- a non-traded business development company and one of the biggest of its kind- disclosed that shareholders had requested to redeem 9.3% of their shares. Management elected to cap repurchases at 5%, roughly half of what investors sought. The fund held approximately $1.2 billion in eligible shares at year-end, meaning investors will receive back around $620 million rather than the full amount they requested, Bloomberg reported.
BlackRock shares fell more than 7% in New York trading, mirroring steep declines at rival alternative asset managers including KKR & Co. and Ares Management Corp., both of which have had their worst start to a year in a decade.
Why Did BlackRock Impose The Cap?
BlackRock defended the move as consistent with how it has long managed liquidity in the flagship direct lending product, known as HLEND, calling the restriction a “foundational” feature of the investment structure.
“Without it, there would be a structural mismatch between investor capital and the expected duration of the private credit loans in which HLEND invests,” the fund said in a statement.
HPS executives added that the constraint would position the fund to capitalize on “compelling investment opportunities” during a period of elevated uncertainty.
Is This Part Of A Broader Industry Trend?
The decision marks the most prominent instance of gating investor withdrawals among major private credit funds in months. In the prior period, the fund faced withdrawal requests of about 4.1%- well within the standard 5% tender threshold that non-traded BDCs typically offer on a quarterly basis.
Are BlackRock’s Other Funds Also Affected?
A separate, smaller BlackRock vehicle- the BlackRock Private Credit Fund, which held roughly $2.2 billion in assets at year-end- also reported that investors had sought to redeem 4.5% of shares. Unlike HLEND, that fund said it would fulfill all redemption requests in full. Earlier this week, Blackstone Inc.’s flagship private credit fund fulfilled a record tender request of 7.9% of shares, in part by having firm employees invest their own capital to offset the shortfall. In January, Blue Owl Capital Inc. allowed investors in one of its technology-focused funds to redeem roughly $527 million- approximately 15% of net assets- without restriction.
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Washington D.C., United States of America (USA)
March 06, 2026, 23:35 IST
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