WASHINGTON (dpa-AFX) - Blackstone [BX] President Jon Gray defended the credit quality of the firm's flagship private credit fund, BCRED, after investors withdrew nearly 8% from the fund in the last quarter.
The alternative asset management company stated in a late Monday filing that it allowed 7.9% of BCRED investors, which it calls the largest private credit fund in the world with around $82 billion invested, to withdraw their funds. Blackstone facilitated this in part by having the firm's own investors contribute $150 million into the fund.
Recent moves by alternative asset managers to allow investors to cash out of funds have added to jitters around private credit and loans to the software industry.
Last month, Blue Owl said it found buyers for $1.4 billion of its loans, in part to help cash out 30% of an embattled credit fund. Now, with the larger Blackstone being swept up in this trend, concerns around private credit seem to be broadening.
Gray acknowledged that there is 'a constant spin cycle' of concerns in the market, which can make investors and financial advisors nervous and trigger redemptions.
However, he noted that loans to software firms, which make up the single biggest exposure for BCRED at around 25% of the fund, will be difficult to dislodge despite the impact of AI in the coming years.
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