Key Points

  • The HPS Corporate Lending Fund faced $1.2 billion in Q1 withdrawal demands, representing 9.3% of net asset value
  • The asset manager implemented its 5% redemption threshold, processing $620 million while halting additional withdrawals
  • Shares of BLK declined approximately 5% during Friday’s trading session
  • Competing asset managers experienced similar declines: Blue Owl, KKR, Carlyle, Apollo, Ares, and TPG each dropped 5–6%
  • Blackstone previously expanded its redemption threshold from 5% to 7% and contributed $400 million to satisfy all pending requests

BlackRock (BLK) experienced significant market pressure Friday after limiting investor withdrawals from its $26 billion HPS Corporate Lending Fund.


BLK Stock Card
BlackRock, Inc., BLK

During the first quarter, the fund received withdrawal requests totaling $1.2 billion, equivalent to 9.3% of net asset value. The firm processed $620 million in redemptions before activating the 5% quarterly limitation clause that permits suspension of additional withdrawals.

Shares of BLK declined approximately 5% during early Friday trading hours. The stock had already experienced downward momentum alongside broader private credit market weakness.

The selloff extended throughout the alternative asset management sector. Blue Owl Capital, KKR, Carlyle Group, Apollo Global Management, Ares Management, and TPG each posted declines ranging from 5% to 6% on Friday.

BlackRock characterized the withdrawal limitation as a standard protective mechanism rather than an emergency response. The company emphasized these safeguards exist to maintain alignment between investor liquidity expectations and the extended-term characteristics of private credit portfolios.

“Preserving the fund’s available capital to lean into this perceived opportunity set… is in the best interest of the fund as a whole,” HPS said in a statement.

Industrywide Redemption Challenges Emerge

Blackstone recently elevated its typical 5% redemption ceiling to 7% while injecting $400 million of proprietary capital — combined with employee contributions — to fulfill all pending withdrawal requests.

Blue Owl has attracted scrutiny after substituting immediate cash redemptions with commitments for future distributions.

The surge in withdrawal requests signals mounting concerns regarding private credit investment structures. Capital deployed in these vehicles typically finances illiquid loans that resist rapid liquidation — creating friction when multiple investors simultaneously seek exits.

The HPS Corporate Lending Fund, identified as HLEND, operates as a non-traded business development company (BDC). During the previous quarter, withdrawal requests measured approximately 4.1% — substantially lower than the current quarter’s 9.3%.

Context Behind the HPS Acquisition

BlackRock completed its $12 billion acquisition of HPS Investment Partners last year, representing a major strategic commitment to private credit expansion.

The fund initiated a standard repurchase offer last month for up to 5% of outstanding units, following typical non-traded BDC operational procedures.

Confidence in private credit markets had already weakened last year following fund exposures to bankruptcy filings by a U.S. auto parts manufacturer and a subprime automotive lender.

Market conditions throughout 2025 have shown heightened volatility, prompting investors to gravitate toward lower-risk assets. This reallocation has intensified redemption demands on private credit products that previously attracted interest as high-yield options during stable market periods.

The HLEND fund maintained $26 billion in assets under management when the withdrawal restriction was announced.