Summary of Financial Institutions Restricting Withdrawals in Private Credit
As of March 13, 2026, several major players in the $1.8-2 trillion private credit industry have imposed restrictions on investor redemptions or related lending amid surging withdrawal requests, driven by concerns over liquidity mismatches, credit quality in sectors like software, and market dislocation. These measures primarily affect private credit funds rather than standard bank accounts, with no widespread bank run confirmed.
Key institutions include:
BlackRock: Capped withdrawals at 5% for its $26 billion HPS Corporate Lending Fund after requests reached 9.3% ($1.2 billion), fulfilling only $620 million.
bloomberg.com
Morgan Stanley: Limited redemptions to 5% for its $7.6-8 billion North Haven Private Income Fund after 10.9-11% requests, paying out $169 million (45.8% of tenders).
reuters.com
Cliffwater LLC: Restricted outflows to 7% (regulatory maximum) for its $33 billion Cliffwater Corporate Lending Fund following 14% redemption requests.
bloomberg.com
Blackstone: Raised its redemption cap and injected $400 million of its own capital to meet 7.9% requests in its fund, avoiding full gating but under pressure.
europeanbusinessmagazine.com
Blue Owl: Ceased honoring redemptions, issuing IOUs instead due to liquidity shortfalls.
europeanbusinessmagazine.com
JPMorgan Chase: Marked down loan values (e.g., to software firms), restricting lending to some private credit funds; impacts a small borrower cohort with $22.2 billion exposure.
finance.yahoo.com
Apollo, KKR, Carlyle, Ares, TPG: Facing stock drops of 5-6% amid sector sell-off and broader redemption scrutiny, though specific gating not detailed in latest reports.
europeanbusinessmagazine.com
Unverified rumors persist about Wells Fargo and others, but no credible evidence supports general bank deposit restrictions.
Relevant News Source Quotes
On BlackRock: "The firm on Friday capped withdrawals from its $26 billion HPS Corporate Lending Fund at 5% after investors sought to cash in nearly double that amount — the first major instance of a private credit manager limiting redemptions on a perpetual vehicle since the market jitters began."
This highlights the industry's dilemma: "Blocking withdrawals 'tends to damage relationships and could lead to further redemptions from investors who weren’t planning to exit but interpret it as a distress signal.'"
On Morgan Stanley: "As marketed and consistent with the disclosure in our private placement memorandum, we will be fulfilling tender requests for 5% of units outstanding, as of December 31."
The firm noted that "limiting withdrawals will help avoid asset sales during 'periods of market dislocation' and maximize risk-adjusted returns for investors over time."
On Cliffwater: In a letter to investors, the fund stated a payout of 7% was a “regulatory maximum,” with liquidity at 21% of net asset value; it had previously honored 7% during the Covid pandemic and 5.3% last quarter.
On JPMorgan: "JPMorgan Chase & Co. is restricting some lending to private credit funds after marking down the value of certain loans in their portfolios."
The bank "reserved the right to revalue private credit assets at any time," with decisions not triggering material margin calls so far.
On broader firms like Blackstone and Blue Owl: Blackstone "raised its withdrawal cap and injected $400 million of its own capital to cover investor demand," while Blue Owl "replaced withdrawal requests with IOUs, as a formal acknowledgment that it cannot currently meet its liquidity obligations to investors."
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