A private credit fund managed by Barings capped withdrawals at 5% of shares after redemption requests surged, the latest in a series of similar moves by asset managers in recent months.
Investors in the $4.9 billion Barings Private Credit Corp (BPCC) fund sought to pull 11.3% of shares in the first quarter, according to a filing on Monday. The fund will fulfill roughly 44.3% of the repurchase requests.
Private credit funds have faced high redemption requests as jittery retail investors bolt for the door amid concerns over transparency, valuations and artificial intelligence-related disruption.
Most asset managers, including ApolloAPO.N, Blue OwlOWL.N, AresARES.N and BlackRockBLK.N, capped withdrawals at 5% at their private credit funds in the first quarter.
The saga is reminiscent of the redemption requests wave that hit non-traded real estate investment trusts beginning in late 2022, when valuation jitters had unnerved investors.
Non-traded funds, like BPCC, offer quarterly liquidity through tender offers of up to 5% of shares. Such vehicles tracked by investment bank Robert A. Stanger have returned a record-breaking $7.4 billion to investors in the first quarter as of April 2.
Some market participants say periods of high redemptions are a feature of such semi-liquid vehicles, rather than a flaw. Analysts have also backed capping withdrawals as it reduces risk of large cash drawdowns or forced asset sales.
“As market conditions evolve, we expect differences in performance across managers to become more pronounced given that long-term results are driven in part by the importance of underwriting quality, portfolio construction, and balance sheet management,” BPCC said in a shareholder letter.
Credit quality of the fund’s portfolio remains strong and non-accruals – loans overdue on payments – were at 0.4% at the end of 2025, compared with the historical industry average of 0.9%, the fund said.
Cliffwater’s flagship $33 billion private credit fund is one of the biggest stockholders of BPCC.
Reuters
