Investors in the Blackstone Private Credit Fund requested to withdraw 10% of outstanding shares in the second quarter, Blackstone says.

Blackstone limited redemptions from its flagship private credit fund for the first time, after investors sought to pull 10% of the shares. Silas Brown has more on "Bloomberg Open Interest."

The attempts to cash out indicate wealthy individuals are continuing a recent retreat after many years of piling into private credit funds.

Private credit’s very bad month started on March 2, when Blackstone Inc.’s BCRED revealed what was at the time its largest investor redemptions ever. It was bookended on April 2, when Blue Owl Capital Inc.

Private credit investors have increasingly asked to withdraw funds over concerns about what they are invested in. Many private credit funds have exposure to software companies, which are struggling now due to concerns about artificial intelligence.

Investors in Cliffwater’s $31.3 billion flagship private-credit fund tendered about 17% of the shares in the fund for repayment in the second quarter, up from 14% in the first quarter of

Shares of U.S. alternative asset managers fell in premarket trading on Wednesday as investors braced for second-quarter updates on redemptions from non-traded private ​credit funds, after withdrawals spiked in the prior quarter as concerns ‌rose about liquidity in the fast-growing sector.

Blackstone Private Credit Fund, or BCRED, (BX) said in an investor letter that its repurchase requests came in at ~10% of shares outstanding, and the fund will fulfill requests representing ~5% of shares outstanding.