TFTC on Nostr: Blackstone just used $400 million of its own money to pay investors trying to leave ...
Blackstone just used $400 million of its own money to pay investors trying to leave its $82 billion private credit fund.
Redemption requests hit a record 7.9% of the fund, blowing past the standard 5% quarterly cap. Net outflows: $1.7 billion. The world's largest alternative asset manager is now plugging holes with its own balance sheet just to meet withdrawals.
It's not just Blackstone. Blue Owl permanently froze redemptions on a retail-focused private credit fund two weeks ago. Across the complex, stocks are cratering from their highs: Blue Owl -61%, KKR -44%, Blackstone -43%, Ares -42%, Apollo -39%, Carlyle -25%.
RA Stanger is forecasting a 40% decline in BDC capital formation for 2026. Meanwhile, forensic accountant Tom Gober has been documenting how Apollo, KKR, and Brookfield have been using captive insurance subsidiaries to funnel policyholder money, often retirees' annuity payments, into illiquid private credit that's never been stress-tested in a downturn.
The 777 Partners fraud was the canary. UK mortgage lender Market Financial Solutions collapsed last week, rattling Wall Street lenders. Reuters cited that collapse directly in its reporting on Blackstone's redemptions. This is spreading across borders and asset classes.
Blackstone's Jon Gray went on CNBC and called it "a ton of noise." It's not noise. It's $3 trillion in private credit discovering that getting in was easy, but getting out is a different story entirely.
These are the same firms that manage your 401(k), your pension, your life insurance, and tell you Bitcoin is "too risky."
Published at
2026-03-06 16:02:21 CETEvent JSON
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