BlackRock, the world's largest asset manager, just BLOCKED withdrawals.

[LiberalArkie]

36. From MSN

NEW YORK, March 6 (Reuters) - BlackRock said on Friday it has limited withdrawals from a flagship debt fund after a surge in redemption requests, as investor worries mount around the $2 trillion private credit industry.

Shares of the world's largest asset manager fell 6.7% on the New York Stock Exchange, amid a broader market selloff after worse-than-expected U.S. jobs data and escalating U.S.-Israeli war against Iran.

Sentiment has soured around private credit in recent months, and retail investors are increasingly asking for their money back from funds like BlackRock's $26 billion HPS Corporate Lending Fund (HLEND), which were designed to be open to wealthy individuals.
"It should serve as a warning sign for the industry and the rulemakers about the downside of illiquid funds for retail investors," said Greggory Warren, senior stock analyst at Morningstar.

Last year's bankruptcies of a U.S. auto parts supplier and a subprime auto lender, along with the collapse of a UK mortgage lender last week, have raised questions about lending standards.

Earlier this week, mounting requests prompted rival Blackstone to lift the usual 5% redemption limit on a $82 billion fund to 7%, while the company and its employees invested $400 million to allow all requests to be met. Blue Owl bought back 15.4% of one of its funds in January.