Investors are fleeing private credit. What the funds should do now.

Now investors are heading for the exits. Withdrawal requests from private funds accelerated in the current quarter, leading some like HPS Corporate Lending to limit withdrawals to stated 5% quarterly caps. Redemption requests are likely to stay high for at least several quarters. Inflows to private funds could dry up in coming months as wealth managers balk at committing client cash to them, given negative headlines about private credit and the ability to buy similar cheaper public funds. It’s hard to justi ...