BlackRock sees lower redemption request rate for private credit in Q3
Industry
At BlackRock's flagship private credit fund, redemption requests as a share of total interests fell in the third quarter from the prior quarter, a sign that redemption pressure is easing across the industry. According to a regulatory filing submitted on the 11th, the redemption request rate for the flagship HPS Corporate Lending Fund, which has 23.1 billion dollars in total assets under management, was about 11.5 percent, down from 13.3 percent in the previous quarter. The fund plans to honor redemptions at the industry-standard level of 5 percent. The redemption request rate for the BlackRock Private Credit Fund also fell in the third quarter to 4.58 percent from about 5.3 percent in the prior quarter, while the HPS Corporate Capital Solutions Fund saw its rate drop to 1.9 percent from 4.7 percent. Glenn Shore, an analyst at Evercore, said the backlog of redemption requests is being worked through and he expects the pace of redemption requests among the group of non-listed business development companies to slow.
