Partners Group said on Thursday that withdrawal requests from its investment funds have increased, pushing repurchase activity above internal limits at a major pool and forcing a cap on redemptions. The move follows a separate action by Blackstone, which limited withdrawals at its flagship private credit fund, signaling broadening stress across private funding vehicles.
The firm reported that repurchase requests at a Delaware-based fund with $16 billion in assets reached 6% of that fund’s holdings, surpassing the 5% quarterly limit the company permits. Two sources familiar with the matter said that, as a result, the fund’s withdrawals would be capped.
People familiar with the situation indicated that Partners Group is expected to cap a second large investment pool. That expectation emerged after the company’s shares declined following initial news that it had restricted redemptions from a key fund.
Partners Group, a middle-market alternative asset manager, oversees about $185 billion in assets. The company attributed the pressure to industry-wide volatility affecting open-ended evergreen funds. According to the company, the strain began in private credit and has started to extend into private equity.
In parallel, Blackstone, the world’s largest alternative asset manager, confirmed it had capped withdrawals at its leading private credit fund after redemption requests picked up in the second quarter. Observers noted that Wednesday’s report of Partners Group limiting redemptions was among the first concrete signs that stress originating in private credit was spilling over to other segments.
Private credit commonly furnishes loans that back private equity transactions. The article notes that investors are scrutinizing loans from private credit funds run by large managers. That scrutiny is focused on valuations, lending standards and how software companies will manage AI-related challenges.
Many newer unlisted private credit vehicles, often structured as business development companies, operate on an evergreen basis. Evergreen funds typically allow investors periodic windows to request withdrawals rather than offering continuous liquidity. When redemption requests exceed preset thresholds at these intervals, managers may impose caps to limit outflows.
Contextual note - The information in this article is based on statements and accounts provided by the firms and sources referenced. The situation was described as an example of how liquidity pressures in private credit funds can propagate into related segments of alternative asset management.