Blackstone Group LP's stock fell 5.01% during pre-market trading on Thursday, reflecting growing investor concerns over strains in the private credit market.
The decline comes as a Reuters analysis details widespread jitters in the private credit sector, with major banks tightening lending and numerous funds capping withdrawals. Blackstone's flagship private-credit fund, BCRED, reportedly saw a sharp rise in withdrawal requests in the first quarter, leading to its first quarter of outflows. The company allowed clients to pull a larger-than-usual $3.7 billion from the $82 billion fund.
Broader sector pressure is also a factor, with news that shares of U.S. private credit firms are falling pre-market after peer Blue Owl Capital limited withdrawals in two of its funds. Investors have pulled billions from some of the biggest private credit funds this quarter amid concerns over valuations, transparency, and exposure to troubled companies.
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