Private credit is having a moment. The hottest new asset class has exploded in popularity on the promise of safety and income. Now, if you believe the headlines, it’s a cockroach- infested Hotel California that has enticed and trapped naive retail investors.
And those headlines keep coming. Blue Owl halts redemptions. KKR’s listed fund cuts its distributions. Blackstone’s $US82 billion fund processed $US3.7 billion of withdrawals. On Friday, BlackRock was forced to cap redemptions to 5 per cent on its $US26 billion ($37 billion) private credit fund, trapping investors against their will.
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