Blackstone’s credit fund reaches withdrawal limit
2022.12.06 20:31
© Reuters. FILE PHOTO: Signage is seen outside The Blackstone Group headquarters in Manhattan, New York, U.S., November 12, 2021. REUTERS/Andrew Kelly/File Photo
NEW YORK (Reuters) – Blackstone (NYSE:) Inc said redemptions from its $50 billion non-traded business development company reached its pre-set limit for the first time but investors were still allowed to cash out on their investments.
This is the first time redemption requests had reached the pre-set limit of 5% since Blackstone launched the product in January last year. It also comes after Blackstone announced last Thursday that it would curb withdrawals from its $69 billion unlisted real estate income trust (REIT) following a surge in redemption requests.
Blackstone Private Credit Fund (BCRED) received withdrawal requests from its investors that were about 5% of the fund’s outstanding shares in the fourth quarter that ended on Nov. 30, according to a regulatory filing.
Blackstone said all redemption requests made to BCRED will be honored and that the fund has $8 billion of immediate liquidity.
“BCRED is well positioned with 100% floating rate and 94% senior secured loans and zero payment defaults,” a Blackstone spokesperson said in a statement.
“We saw net positive flows this quarter as investors sought compelling yields in high-quality assets with little volatility.”
