2026-04-04 12:46:42

This is worrying

5 of the biggest names in finance - BlackRock, Blue Owl, Morgan Stanley, Apollo, Ares
- have restricted withdrawals from their private credit funds. Investors are trying to pull out billions .
The 5% quarterly withdrawal cap is standard.
What isn’t standard is Blue Owl seeing 40% of one fund’s investors trying to leave at once; or BlackRock receiving 9.3% in withdrawal requests in a single quarter and paying out half; or Blue Owl skipping the cap entirely and issuing IOUs.
The underlying problem is a $2.1 trillion market that lent heavily to software companies now being disrupted by AI
Default rates are doubling. Morgan Stanley is warning they could hit 8% against a historical average of 2.5%.
US banks have lent $300 billion to these funds. The sector has lost $132 billion in combined market cap this year.
The Trump administration is lobbying to put this into your 401k meanwhile Wall st is trying to get out.

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