New York: BlackRock said yesterday that it has limited withdrawals from a flagship debt fund after a surge in redemption requests, as investor concerns grow over the $2 trillion private credit industry.

Shares of the world’s largest asset manager fell 6.7 percent on the New York Stock Exchange, amid a broader market sell-off following worse-than-expected U.S. employment data and the escalation of that country’s war with Israel against Iran.

In recent months, sentiment around private credit has deteriorated and more retail investors are asking for their money back, such as participants in BlackRock’s $26 billion HPS Corporate Loan Fund, which was designed to be open to wealthy individuals for terms of at least five years.

“The situation should serve as a warning sign to the industry and policymakers about the downside of illiquid funds for retail investors,” said Greggory Warren, senior equity analyst at Morningstar.

By Editor

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