BlackRock Inc. has moved to restrict withdrawals from its $26 billion HPS Corporate Lending Fund (HLEND), limiting redemptions to 5 per cent of the fund’s net assets after investor exit requests climbed sharply higher.
The so-called gating mechanism was triggered after redemption requests reached 9.3 per cent of shares — nearly double the fund’s cap — as nervousness among investors in the private credit space continued to grow. It marks the first time in four years that withdrawal requests have breached the 5 per cent threshold, underscoring a growing sense of unease in the retail private credit market.
BlackRock confirmed on Friday that investors had submitted redemption requests covering 9.3 per cent of their shares, amounting to roughly $1.2 billion. With the 5 per cent cap enforced, the fund paid out approximately $620 million, according to Bloomberg calculations. The company described the restriction as a built-in safeguard.
“Without it, there would be a structural mismatch between investor capital and the expected duration of the private credit loans in which HLEND invests,” said the company in a statement.
BlackRock is the world’s largest asset manager, and HLEND ranks among the biggest non-traded business development companies in the industry.
Is the US-Iran War Driving the Panic?
The escalating conflict between the US and Iran is seen as a primary catalyst, compounded by broader signs of economic strain. The US shed 92,000 jobs in February 2026, with unemployment ticking up to 4.4 per cent — data that has rattled investor confidence further.
BlackRock is not alone in facing pressure. Blue Owl Capital has gone further, permanently freezing all retail capital redemptions, while Blackstone recorded record withdrawals from its $82 billion fund.
The war is also casting a long shadow over Gulf oil revenues — a critical source of long-term capital for global AI and private credit markets. Gulf sovereign wealth funds form the financial backbone of AI infrastructure investment, providing the patient, large-scale capital that the buildout requires. Abu Dhabi’s sovereign wealth fund, for instance, is a key player in private credit — filling the void left by retreating Western banks — and carries an estimated $100 to $200 billion in direct and leveraged AI exposure. Funds such as MGX, Mubadala, ADIA, and PIF collectively underpin much of the private credit and AI infrastructure ecosystem.
BlackRock itself is deeply embedded in this web, with commitments spanning AI infrastructure, equity, private credit, and its own internal technology. Any sustained disruption to the flow of Gulf oil capital, analysts warn, risks setting off a wider domino effect across interconnected markets.
