Private Credit Redemption Requests Surge 56% QoQ to $12 Billion
Investor withdrawal requests from large private credit funds jumped $4.3 billion, or 56%, to $12 billion in Q2 2026, led by the Cliffwater and Blackstone funds. New BDC sales plunged 74% year-on-year in April, signaling rapidly deteriorating confidence.
The private credit crisis is deepening. According to data from The Kobeissi Letter, investor redemption requests from major private credit funds surged by $4.3 billion quarter-over-quarter, a 56% increase, reaching $12 billion so far in Q2 2026.
The Cliffwater Corporate Lending Fund experienced the largest jump, with redemption requests rising by $3.0 billion to $5.3 billion. It was followed by the Blackstone Private Credit Fund, which saw an increase of $720 million, bringing its total to $4.5 billion.
At the same time, new sales of business development companies (BDCs)—the primary retail vehicle for private credit—plummeted 74% year-over-year in April to just $1.6 billion, the lowest monthly total since May 2023.
The data indicates that far fewer retail investors are committing new capital to private credit funds, and analysts expect outflows to persist over the next one to two years before tapering off. Rising stress in this market segment is evident.
Source: The Kobeissi Letter