Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTJoy WiltermuthThu, June 4, 2026 at 10:14 AM GMT+2 3 min readShares of private-equity giants and funds offering individuals exposure to private credit are falling Wednesday. - ANGELA WEISS/AFP via Getty Images)A fresh wave of investor redemptions has hit the roughly $2 trillion private-credit market, sending shares of the sector’s industry giants sharply lower on Wednesday.This time, the selloff can be pegged to news reports of redemptions that were capped at 5% at the $31 billion Cliffwater Corporate Lending Fund in the second quarter, as well as limits on fund withdrawals at Partners Group CH:PGHN, a Swiss and U.S. private-equity firm with $185 billion in assets under management.Most Read from MarketWatchIn ‘wild’ twist, SpaceX won’t be allowed early entry to the S&P 500 after allMarvell looks poised to finally get a spot in the S&P 500 after explosive stock surgeCliffwater didn’t immediately respond to a request for comment. Partners Group, in a statement released on Thursday, confirmed the withdrawal news and said liquidity features are designed to protect long-term investors. The Swiss firm also will said it will open up an additional window for its employees to buy shares in the affected funds.“It’s not just blowing over,” said Mark Malek, chief investment officer at Siebert Financial, who is an investor in private credit. “If these companies didn’t have gating provisions, this would be real trouble.”Malek said the situation reminded him of when customers would see lines forming outside a bank with people looking worried, leading to more customers joining the line and taking their money out. While individuals have been looking for an exit, he hasn’t seen evidence of panic selling by institutions in the sector.The private-credit industry and shares of funds offering individual investors exposure to the sector have been under pressure 2026, as shown in the chart below.Concerns about the sector were building before April, when Blue Owl Capital OWL made headlines by limiting redemptions. Blue Owl declined to comment. Its shares fell 3.8% Wednesday, according to FactSet, while those of private-equity giant KKR & Co. KKR shed 4.2% and Blackstone’s BX shares were 4% lower. KKR declined to comment. Blackstone didn’t immediately respond to requests for comment.Investors increasingly have looked to pull funds from private credit. As a snapshot of the trend, a Partners Group report from May pegged industry redemptions from a select group of nontraded business-development companies at more than $12 billion in the first quarter of 2026, of which roughly half were honored.- Partner GroupWednesday’s selloff comes after several boom years that saw double-digit annual returns. Returns have been smaller lately, in a backdrop of persistently higher Treasury yields BX:TMUBMUSD10Y and overall borrowing costs. The Cliffwater corporate fund reported a return of 1.7% on the year so far.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info