BlackRock worries markets by limiting the redemption of one of its flagship funds

BarcelonaBlackRock has limited redemptions from one of its flagship private debt funds, setting off alarm bells. Its subsidiary HPS, acquired last year, has received redemption requests for 9.3% of the assets in one of its credit funds, which has $26 billion (approximately €22 billion at the current exchange rate). As reported by the world's largest asset manager, only redemptions corresponding to 5% of this fund will be honored. Until now, BlackRock had approved 54% of redemption requests in the first quarter, totaling $1.2 billion, and HPS has informed its investors that it will only redeem another $620 million. This decision by Larry Fink's firm has caused its stock price to fall by 7.1% and has unsettled a market that has been showing signs of concern for some time. More specifically, BlackRock's move comes after another asset manager, Blue Owl, suspended redemptions on one of its funds last month, putting the private credit market on alert. Private credit has boomed in the United States, but doesn't exist in Europe.

Shareholder interest

In the letter addressed to the people and entities that participate in the fundHPS justifies the decision "with the best interests of all shareholders in mind." It adds: "We have always grown the capital base methodically, modulating our acceptance of new fund subscriptions to match what we perceived as the attractive long-term investment opportunity established at the time. This capital discipline led us to limit monthly subscriptions several times over rather than dilute returns for existing shareholders." To reassure shareholders, it explains that the investment portfolio "is highly diversified and conservatively positioned." It also explains that it has "significant liquidity, amounting to more than $4.4 billion as of February 28, 2026, and raised approximately $840 million in subscriptions during the first quarter." The case of the BlackRock fund is the clearest example of redemption caps among major private credit funds since this trend began late last year. At that point, caution began to grow among investors in these assets. Many firms had previously opted to heed the largest bailout requests or seek other ways to repay capital. Funds that lend money to companies are common in the US. The interest rates they apply are usually higher than those of banks and the private debt market (bonds). The return for investors is higher, but so is the risk. Recently, concerns have arisen about the effects that the application of artificial intelligence may have on these instruments. It is estimated that this market exceeds the equivalent of 1.6 trillion euros.