Odaily Odaily reports that as investor concerns about private lending risks intensify, several Wall Street banks and private lending funds are taking measures to address potential pressure. Some US banks are tightening lending to private lending, while funds are restricting investor redemptions. According to Moody's data, as of June 2025, US banks have provided nearly $300 billion in loans to private lending, with another $285 billion lent to private equity funds, leaving $340 billion unused. Market concerns stem from valuation and transparency issues, as well as the risks exposed in private lending during the bankruptcies of First Brands and Tricolor. Analysts point out that continued investor skepticism regarding exposure to software and technology assets, coupled with tight liquidity, suggests that the private lending market may remain under pressure in the short term. Key actions taken by Wall Street banks and private lending funds include:
1. JPMorgan Chase has downgraded the valuation of some private lending loans involving the software sector, reducing further lending.
2. Morgan Stanley restricted redemptions from the North Haven Private Income Fund, fulfilling only about 45.8% of investor applications in the first quarter to avoid market mismatch.
3. BlackRock imposed a 5% limit on redemptions from the HPS Corporate Lending Fund. In the first quarter, $1.2 billion in redemptions were requested, but only $620 million was disbursed.
4. Blackstone's BCRED fund saw net redemptions of $1.7 billion in the first quarter, but employees received $400 million in additional funding to fill the gap and the quarterly redemption cap was raised from 5% to 7%.
5. Blue Owl Capital sold $1.4 billion in assets to repay investors and permanently suspended redemptions from one of its funds.
6. Cliffwater limits quarterly redemptions to 7% to address approximately 14% of investor redemption requests in the first quarter. (Reuters)
