Blackstone Private Credit Fund notified investors on June 4 that it will limit share repurchases to 5% of outstanding shares for the second quarter of 2026, citing redemption demand that exceeded the fund's repurchase framework.
Requests to redeem roughly 10% of shares outstanding were submitted for the quarter, the fund said, double the 5% cap the board uses as the standard repurchase ceiling. As a result, BCRED will satisfy redemptions on a pro rata basis at the 5% limit.
Earlier in 2026 the fund had taken a more permissive stance: in the first quarter the board temporarily raised the repurchase cap to 7% from the typical 5%, enabling BCRED to meet all repurchase requests for that period. For the second quarter, the fund reported capital inflows equal to about 2% of net asset value, which left the quarter with a net outflow of roughly 3% of NAV once redemption activity was netted against inflows.
BCRED reported a strong liquidity position as of March 31, 2026, with $15 billion available through cash and undrawn borrowing capacity. The fund's leverage stood at a debt-to-equity ratio of 0.8x as of April 30, 2026.
Active deployment continued in the first quarter. The fund invested more than $4 billion during the period and took a $425 million commitment into a $10 billion senior secured financing arranged for Firmus Technologies, an AI infrastructure platform. At the same time, BCRED recorded $2.6 billion in loan repayments in the quarter, which the fund says represents an annualized repayment rate of about 13%.
Performance metrics released by the fund show a 9.3% annualized total return for Class I shares since BCRED's 2021 inception, measured through April 30, 2026. Class I shares currently carry a distribution rate of 10.0%.
On an asset-quality and valuation basis, the portfolio was marked at 96.1 as of April 30, 2026, with exposure spread across more than 660 borrowers. Portfolio companies reported EBITDA growth of 11% over the last twelve months. Interest coverage has also improved, rising 40% over the past two years to reach 2.2x as of March 31, 2026.
The fund's June 4 investor letter makes clear that for Q2 2026 repurchases will be constrained by the 5% cap and that excess redemption demand will be allocated on a pro rata basis among requesting shareholders.