Average requests rose to 10.3% of shares from 9.7% in Q1, but varied widely (1.3%-38.1% at Blue Owl’s OTIC), Fitch said. Many inquiries were follow-ups from investors who were only partially satisfied last quarter. New inflows fell by about 56% on average, so most funds saw a net outflow of about 3% of the previous quarter’s net asset value.
The concern for private credit is that Fitch expects continued redemptions in the coming months.
“With BDCs limiting redemptions to 5% quarterly, unmet requests will lead to persistently elevated redemptions for many firms in the coming quarters,” rating agency Fitch warned, the rating agency said.
Same story, different structures
Bitcoin ETFs are liquid, exchange-traded vehicles where outflows directly affect the spot price of BTC. Private credit BDCs are the opposite: illiquid, long-term loan vehicles with built-in quarter gates.
Still, the fact that investors rushed for exits in both at the same time points to a broader caution around liquidity and risk appetite.
Amid all this, energy markets continue to send risk-off signals, with the US strategic oil reserve at its lowest level since 1983. So if the energy market remains disrupted, the government now has significantly less buffer to flood the market with oil and keep prices lower.
