It seems like people are short on cash and are trying to free up funds, but it has become a bit tricky. Funds and asset managers are restricting withdrawals.
For example:
- Apollo Private Credit Fund has limited investor withdrawals following a surge in requests Link
- Ares Management is the latest to restrict withdrawals from private credit funds link
- Morgan Stanley’s “North Haven Income” fund has already limited withdrawals link
- Cliffwater has also restricted withdrawals link
Do you know of other Funds and asset managers that are restricting withdrawals?
Do you think it is happening all over again?
Is this the start of a new 2008 or am I seeing ghosts?
byu/aalborg12 instocks
Posted by aalborg12
1 Comment
Yes and no. The private credit market was definitely overheated, and there are real concerns about the returns on the AI infrastructure investment, but I doubt it’s a massive systemic risk.
One thing is that since these funds are dealing with long term loans, they naturally have cap on redemptions. In some way the restrictions to redemption are working exactly as they were designed.