Private-credit / semi-liquid fund gating and severe-secondary risk
Key Questions
What lawsuit is Blue Owl facing in private credit?
Blue Owl Technology Credit faces a lawsuit alleging excessive fees tied to PIK income under a novel legal theory. This adds to broader sector litigation pressures.
How high are Apollo redemption requests now?
Apollo redemption requests have climbed to 16.8% from 11.2% quarter-over-quarter. This reflects rising investor exits amid sector stress.
What is the current level of the KBRA default index?
The KBRA default index stands at an all-time high of 2.3%. BDC non-accruals have also risen 40% quarter-over-quarter.
Why is HSBC retreating from private credit?
HSBC is pulling back after a $400M loss linked to Apollo's Atlas SP. The bank is tightening its strategy on higher-risk private credit bets.
Which fund has capped withdrawals at 5%?
Ares ASIF has capped withdrawals at 5% following 14.4% exit demand. Partners Group has also gated its PE evergreen fund.
What is the status of tokenized private credit?
Tokenized private credit has reached $51B according to Bernstein. Institutional investors continue to allocate while retail flows slow.
How are family offices shifting allocations?
Family offices are trimming PE exposure and rotating into private credit, secondaries, and hedge funds per UBS data. Manager differentiation is becoming key.
What regulatory actions target private credit?
The BoE is stress-testing firms and Moody's has cut its US BDC outlook to negative. The FSB has warned on circular ownership risks.
Stress intensifies: Blue Owl faces excessive fee lawsuit over PIK income (novel legal theory). Apollo redemption requests hit 16.8% (up from 11.2% QoQ), KBRA default index at 2.3% (all-time high), BDC non-accruals up 40% QoQ, BDC discounts 20-25%. HSBC retreats from private credit after $400M loss tied to Apollo's Atlas SP. Ares ASIF caps withdrawals at 5% after 14.4% exit demand. BlackRock DOJ probe, TCP Capital $2B exposure. Partners Group gates PE evergreen fund. Oaktree sees redemptions halve to 4.5%—manager differentiation key. Goldman's fund bucks trend with 3.24% redemptions. Tokenized private credit hits $51B (Bernstein). Family offices trimming PE, rotating into private credit/secondaries/hedge funds (UBS). BoE stress-testing; Moody's cuts outlook on US BDCs to negative; FSB warns of circular ownership. SSGA credit outlook: late-cycle caution, quality cash. BDC rotation framework: internally managed BDCs (TRIN, MAIN, CSWC) as safe havens.