BlackRock Limits Withdrawals from HPS Corporate Lending Fund
BlackRock has announced that it will limit withdrawals from its $26 billion HPS Corporate Lending Fund due to a surge in redemption requests. This decision, made on March 6, 2026, comes as investors requested to redeem 9.3% of their shares, prompting BlackRock to cap repurchases at 5%.
The total value of withdrawal requests reached approximately $1.2 billion, leading BlackRock to pay out $620 million as part of the quarterly redemption. Following this announcement, BlackRock’s shares fell 4.6% in early trading, reflecting investor concerns.
The private credit industry, valued at $1.8 trillion, has been facing increased redemption requests amid worries about lending practices. BlackRock’s action marks the clearest instance of gating withdrawals among major private credit funds since late last year, when high-profile collapses raised questions about lending standards.
BlackRock’s decision to limit withdrawals is part of its management strategy for liquidity concerning its direct lending retail product, HLEND. HPS executives indicated that restricting redemptions would allow the fund to capitalize on compelling investment opportunities.
In a statement, HPS noted, “In our judgment, preserving the fund’s available capital to lean into this perceived opportunity set, while providing liquidity to shareholders consistently with the fund’s designed parameters, is in the best interest of the fund as a whole.” This reflects a strategic approach to navigate the current market volatility.
BlackRock’s acquisition of HPS Investment Partners in a $12 billion deal last year was intended to bolster its position in private assets. However, the current surge in redemption requests has raised uncertainties about the long-term impact on investor confidence.
BlackRock emphasized that without these measures, there would be a structural mismatch between investor capital and the expected duration of the private credit loans in which HLEND invests. The uncertainty presents an opportunity, according to HPS, as they navigate through the heightened volatility and investor anxiety.
Details remain unconfirmed regarding the exact reasons for the surge in redemption requests, leaving investors and analysts to speculate about the underlying factors driving this trend.
