Average requests increased to 10.3% of shares from 9.7% in the first quarter, but vary widely (1.3% to 38.1% for Blue Owl’s OTIC), Fitch said. Many requests followed from investors which had only been partially satisfied in the last quarter. New inflows fell by around 56% on average, so most funds saw net outflows of around 3% of the previous quarter’s net asset value.
What is worrying for private credit is that Fitch expects continued redemptions in the coming months.
“With BDCs capping buybacks at 5% per quarter, unmet demand will result in persistently high buybacks for many companies in the coming quarters,” rating agency Fitch warned, the ratings agency said.
Same story, different structures
Bitcoin ETFs are liquid exchange-traded vehicles, where outflows have a direct impact on the spot price of BTC. Private credit BDCs are the opposite: illiquid, long-duration lending vehicles with built-in quarterly gates.
Still, the fact that investors rushed out of both markets at the same time speaks to greater caution about liquidity and risk appetite.
Amid all this, energy markets continue to send signals of risk aversion, with the U.S. Strategic Oil Reserve at its lowest level since 1983. So if the energy market remains disrupted, the government now has much less room to flood the market with oil and keep prices low.
