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ARES, APO, BLK, BX and OWL face pressure as $13B in private credit exits strain liquidity, leaving $4.6B trapped and exposing cracks in the $2T market.

There is no shortage of BDC bear arguments. Yet, as a BDC bull, I have to say that, arguably, the most critical risk remains overlooked. In the article I discuss this risk in detail (it might make you bearish).

Two of the biggest names in private credit blocked investors from getting even half of the money they wanted out of their funds, a sign of mounting strain in the $1.8 trillion market. Dani Burger has more.

The concerns about private credit largely center around non-banks making direct loans. One reason the sector has come under scrutiny is that it lends heavily to the beaten-down software sector.

Ares Management has begun limiting withdrawals from its Strategic Income Fund as redemption requests rise across the private credit industry.

A wave of investor withdrawals and concerns over deteriorating loan quality are forcing asset managers to cap redemptions in their private credit funds. But strategists say a rise in defaults could help flush out bad loans, bringing a painful but ultimately healthy reset for the sector.

Whalen Global Advisors chairman Christopher Whalen warns of hidden risks and illiquidity in private equity and credit markets on ‘Making Money.'