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BlackRock Limits Withdrawls
Investment management firm BlackRock BLK -7.17% ▼ has imposed limits on withdrawals from one of its flagship private credit funds after several investors rushed to pull money, marking another sign of stress in a sector that had been booming just a year ago. Following the news, BLK stock declined 6% on Friday.
The sell-off spilled into the broader private equity sector, with Blue Owl Capital OWL -5.04% ▼ down 4.1%, KKR KKR -4.46% ▼ off 4%, Carlyle Group CG -5.36% ▼ down 3.7%, Apollo Global Management APO -2.28% ▼ slipping 3.2%, and Ares Management ARES -6.01% ▼ falling 4.6%.
The firm disclosed that its $26 billion HPS Corporate Lending Fund received $1.2 billion in redemption requests in the first quarter, about 9.3% of its net asset value.
Because the fund’s structure allows only 5% of assets to be redeemed in a quarter, BlackRock will pay out $620 million and defer the remaining requests, activating its withdrawal limit mechanism.
More at:
https://www.tipranks.com/news/inves...ck-blk-as-it-limits-withdrawals-stock-drops-6
BlackRock Limits Withdrawls
Investment management firm BlackRock BLK -7.17% ▼ has imposed limits on withdrawals from one of its flagship private credit funds after several investors rushed to pull money, marking another sign of stress in a sector that had been booming just a year ago. Following the news, BLK stock declined 6% on Friday.
The sell-off spilled into the broader private equity sector, with Blue Owl Capital OWL -5.04% ▼ down 4.1%, KKR KKR -4.46% ▼ off 4%, Carlyle Group CG -5.36% ▼ down 3.7%, Apollo Global Management APO -2.28% ▼ slipping 3.2%, and Ares Management ARES -6.01% ▼ falling 4.6%.
The firm disclosed that its $26 billion HPS Corporate Lending Fund received $1.2 billion in redemption requests in the first quarter, about 9.3% of its net asset value.
Because the fund’s structure allows only 5% of assets to be redeemed in a quarter, BlackRock will pay out $620 million and defer the remaining requests, activating its withdrawal limit mechanism.
More at:
https://www.tipranks.com/news/inves...ck-blk-as-it-limits-withdrawals-stock-drops-6
