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Private Credit Market Faces Redemption Wave as Mega-Funds Deploy Capital

Blackstone is enlisting senior executives to inject capital into its flagship private credit fund amid a surge in redemption requests across the $1.8 trillion market. The move reflects efforts to stabilize portfolios amid broad-based withdrawal pressure. Golub Capital recently capped outflows from its main fund after investors sought to pull 8.5% of shares, marking the latest restriction among major managers. The Federal Reserve assessed that stability risks from continued redemptions remain limited and manageable. Institutional investors are reassessing exposure, with Brown University's endowment cutting its position in a Blue Owl private credit fund by more than half. Despite redemption headwinds, major managers continue deploying capital, with a Blackstone-led group preparing to invest at least $100 million in a software restructuring.