Apollo and Morgan Stanley have once again restricted withdrawals from private credit funds
The volume of applications increased compared to the previous quarter
Apolo and Morgan Stanley have capped withdrawals from private lending funds at 5%; the number of requests has doubled / Photo: Taljat David / Shutterstock.com
Morgan Stanley’s North Haven Private Income private credit fund, with $7 billion in assets, and Apollo Debt Solutions, with $26 billion in assets, limited investor redemptions to 5% for the second consecutive quarter. At the same time, the volume of redemption requests exceeded this threshold by two to three times. In the current quarter, redemption requests in the private credit market as a whole have increased after many private funds failed to fully satisfy investors’ requests to sell their shares in the previous quarter, Bloomberg notes.
North Haven Private Income Fund reported that investors requested withdrawals of 11.6% of their funds in the second quarter. By comparison, in the first quarter, they sought to withdraw 10.9%, according to Bloomberg. More than half of the redemption requests for Morgan Stanley’s fund in the second quarter came from investors who were unable to fully withdraw their money during the previous three months, the company said.
Redemption requests from Apollo Debt Solutions rose to 16.8% in the second quarter, amounting to approximately $2.4 billion, the company reported to the SEC on June 22. In the previous quarter, redemption requests from the fund exceeded 11%, according to CNBC. In its filing with the SEC, the company noted a “notable regional disparity” in redemption requests during the second quarter: U.S. clients sought to sell about 4.3% of their shares, while redemption requests from foreign investors jumped to 12.5%.
In early June, Blackstone announced that it had capped investor redemptions from its flagship $79 billion Blackstone Private Credit Fund at 5% after redemption requests rose to 10% in the second quarter. Across the Atlantic, Switzerland’s Partners Group warned that it may limit redemptions in several of its private asset funds following a sharp rise in redemption requests, according to CNBC.
This year, investors have lost interest in the private credit market due to concerns about loan quality and fund investments in software developers, who may be negatively impacted by AI’s effects on the industry. Bloomberg notes that in the first quarter, for the first time, non-traded private credit funds returned more money to investors than they raised.
This article was AI-translated and verified by a human editor
