Private credit funds, already under pressure from substantial redemptions, are facing a new challenge: losses in February are set to be their worst in over three years.
Two major funds targeting retail investors—Blue Owl Capital and BlackRock's HPS Investment Partners—recorded negative returns for the month, in line with industry peers.
According to Bloomberg calculations based on regulatory filings, the non-listed business development company Blue Owl Credit Income Corp. fell 0.86% in February. The HPS Corporate Lending Fund, which has $26 billion in assets, declined 0.3% during the same period, as shown on its official website. For both funds, this marks their worst monthly performance since 2022, coinciding with the leveraged loan market posting its largest monthly drop since that year.
Despite the relatively weak performance in February, these funds have shown mixed results year-to-date. The $35 billion Blue Owl fund is experiencing its worst start since it began investing in 2021, with a loss of approximately 0.75%. In contrast, the HPS fund has managed a positive return of 0.51% since the beginning of 2026, a rare achievement among major peers. Apollo Debt Solutions has also recorded gains this year, rising 0.39%.
Representatives for Blue Owl, BlackRock, and Apollo all declined to comment.
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