BlackRock Restricts Withdrawals at HPS Private Credit Fund
BlackRock restricted withdrawals from its HPS private credit fund after redemptions hit a five percent cap. Total requests reached $1.2 billion this quarter.
BlackRock, Inc. has moved to limit withdrawals from its flagship private credit fund following a significant increase in redemption requests. This action makes the firm the latest major player to respond to heightened investor caution within the private credit asset class. The $26 billion HPS Corporate Lending Fund received withdrawal requests totaling $1.2 billion in the first quarter, representing approximately 9.3% of its net asset value. In response, HPS Investment Partners notified investors that it would fulfill $620 million of the requests, hitting a 5% quarterly threshold that permits the manager to restrict further outflows. Shares of the asset manager fell 3.4% in pre-market trading after the Financial Times first reported the development. BlackRock integrated HPS into its operations following a $12 billion acquisition last year, a move designed to strengthen its position in the rapidly expanding private credit sector.