Stock Market

Story: Blackstone’s BCRED Caps Withdrawals at 5% as Private Credit and Crypto Both Crack

By Maheen Hernandez

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Why Redemptions Surged Now. Part of the story is crypto. Bitcoin dropped roughly 13% over the span of a week, trading near…

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Cliffwater, Apollo, Ares — It's Not Just Blackstone. BCRED isn't alone in this. Cliffwater's Corporate Lending Fund got hit with redemption requests…

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What the Cap Actually Means for Investors. For anyone sitting in BCRED right now, the practical reality is a queue.

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Blackstone hit a wall this quarter. Its private credit fund, BCRED, restricted withdrawals to 5% of outstanding shares — even though investors came asking for double that.

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The 10% redemption request was the pressure point. BCRED held the line at 5%, and per a recent regulatory filing, it's the first time the fund has ever imposed that cap.

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The crypto-to-private-credit connection has gotten tighter over the past couple of years as tokenized versions of traditional financial products gained traction.

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BCRED isn't alone in this. Cliffwater's Corporate Lending Fund got hit with redemption requests for 17% of its shares and only fulfilled about a third of them.

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Related: Raoul Pal Says Bitcoins 318% Surge Since FTX Crash Beats Nasdaq Cold

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Apollo, Ares, and KKR are all reporting declines too. And here's the thing that stands out — the S&P 500 has actually rallied, but the stock prices of major private credit…

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For anyone sitting in BCRED right now, the practical reality is a queue. If you wanted out this quarter and you're part of that 10% asking for redemptions, you got half of what…

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Private credit funds are structurally built around illiquid assets — loans to mid-market companies, direct lending deals, credit facilities that don't trade on any exchange.

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And the timing matters. Both crypto and private credit are pulling back at the same time, which means investors who spread capital across both asset classes are getting squeezed…

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More context: Macro Headwinds Pressure Crypto in Risk-Off Environment

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Blackstone's BCRED had $64,000 Bitcoin as part of the backdrop when it filed the cap disclosure. Cliffwater fulfilled roughly one-third of its 17% redemption requests.

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