The Trading Market Signals Private Credit Redemption Monitor tracks how the largest private credit funds sold to wealth clients are handling investor withdrawal requests as redemption demand outruns the quarterly limits written into these vehicles. As of July 27, 2026, the pressure has carried into the third quarter: Blue Owl capped two of its flagship funds at 5% on July 2 after one drew requests for 38.1% of its shares, and by July 23 the industry had begun retiring the “semi-liquid” label itself, with Bloomberg reporting that managers now prefer “conditional” or “periodic” liquidity. The second quarter is closed and the results are in: non-traded BDCs met roughly $5.9 billion in redemptions in Q2 and more than $12.7 billion year-to-date, honoring their caps while prorating the excess. The funds gated, and the funds paid.
Redemption status by fund (2026 cycle, most recent gate)
| Fund (size) | Manager | Structure | Quarterly cap | Latest request | Outcome | NAV signal | As of |
|---|---|---|---|---|---|---|---|
| Blue Owl Technology Income Corp (OTIC) | Blue Owl | Non-traded BDC | 5% | 38.1% of shares (~$1.1B) | Capped at 5% on July 2, 2026; prorated (down from 40% prior quarter) | — | Jul 2026 |
| Blue Owl Credit Income Corp (OCIC) | Blue Owl | Non-traded BDC | 5% | 18.8% of shares ($3.6B) | Capped at 5% on July 2, 2026; prorated (down from 22% prior quarter) | — | Jul 2026 |
| Golub Capital Private Credit Fund | Golub Capital | Non-traded BDC | 5% | 8.5% of shares (Q2 tender) | Fulfilling up to the 5% cap; prorated | — | Q2 2026 |
| BCRED — Blackstone Private Credit Fund | Blackstone | Non-traded BDC | 5% | ~10% of shares (Q2 tender) | Prorated to the 5% cap; Q1 had cleared 7.9% (~$3.8B) at 100% | — | Q2 2026 |
| BlackRock Private Credit Fund (BDEBT) | BlackRock | Non-traded BDC | 5% | ~5.3% of shares | Exceeded the 5% cap for the first time since 2022 inception; prorated | — | Q2 2026 |
| Oaktree Strategic Credit Fund | Oaktree | Non-traded BDC | 5% | 6.8% of shares (13.9M shares) | Expanded the cap; paid roughly $310M | — | Q1 2026 |
| Goldman Sachs Private Credit Corp | Goldman Sachs | Non-traded BDC | 5% | Above cap (Q2 tender) | Prorated tender; SC TO-I filings on record | — | Q2 2026 |
| North Haven Private Income Fund (~$8B) | Morgan Stanley | Non-traded BDC | 5% | 10.9% of shares | Met 45.8% of requests; ~$169M returned | — | Q1 2026 |
| Cliffwater Corporate Lending Fund (~$33B) | Cliffwater | Interval fund | 7% | 14% of shares | Gated at cap; 2x oversubscribed | — | Q1 2026 |
| Blue Owl Capital Corp II / OBDC II (~$1.6B) | Blue Owl | Non-traded BDC | Quarterly | Redemptions closed Feb 18, 2026 | Unsolicited tender (Cox/Saba) at $3.80; $1.4B loan sale | −34.9% to NAV | Feb–May 2026 |
| Category aggregate — non-traded BDCs | — | Non-traded BDC | typ. 5% | Ares, Apollo, MS, Blackstone all above 5% | ~$5.9B returned in Q2, >$12.7B YTD; fundraising −55% YoY; net outflow ~$1B | Public BDCs trade ~80% of NAV avg | Q2 2026 |
What is new in July 2026?
The third quarter opened on the same pattern. On July 2, Blue Owl capped redemptions at 5% for two flagship funds after Blue Owl Credit Income Corp. drew requests for 18.8% of its shares ($3.6 billion) and Blue Owl Technology Income Corp. drew 38.1% ($1.1 billion), according to Bloomberg and CNBC. Both readings were down from 22% and 40% the quarter before, and KKR reported its own private credit clients slowing their exit requests around July 6, the first sign the wave may be cresting rather than building. The language is changing too. On July 23, Bloomberg reported that managers are retiring the “semi-liquid” label many used to sell these funds, favoring “conditional” or “periodic” liquidity instead. PIMCO went further, arguing that redemption caps do not fix the product’s underlying problem: a daily-marketed promise wrapped around assets that trade in years, not days.
What does the monitor track?
This page follows the funds at the center of the 2026 private credit redemption cycle: non-traded business development companies, interval funds, and tender-offer funds sold largely through wealth platforms. For each fund we record the contractual quarterly redemption cap, the most recent disclosed redemption request level, the outcome investors actually received, and any signal from net asset value (writedowns, traded discounts, or tender prices). Figures are sourced to named primary and secondary reporting and carry an explicit “as of” date. We update the table as funds report new quarterly figures or disclose gate changes.
What changed between Q1 and Q2 2026?
The Q1 gates were not a one-quarter event. BCRED met every request in the first quarter by lifting its limit to 7.9%, then saw second-quarter demand climb toward 10% of shares and prorated the tender back to the 5% cap, according to InvestmentNews and BNN Bloomberg. BlackRock’s non-traded private credit fund crossed its 5% cap for the first time since inception. Robert A. Stanger & Co. reported that non-traded BDC redemptions outpaced new sales in the first quarter by about $2 billion, the first net outflow the category has recorded. The direction of travel matters more than any single tender: when the marginal investor wants out two quarters running, the queue mechanics that read as fine print at the point of sale become the defining feature of the product. With the second quarter now closed, the funds met their caps: Stanger reported about $5.9 billion returned in Q2 and more than $12.7 billion year-to-date, so the picture is orderly proration rather than frozen redemptions.
Why are these funds gating in 2026?
The category grew to roughly $534 billion in limited-liquidity private asset funds by the end of 2025, much of it gathered through advisor channels. When redemption requests crossed the caps, managers chose to protect remaining investors from forced asset sales rather than meet every request. Carlyle chief executive Harvey Schwartz put the naming problem bluntly: the industry “did itself a bit of a disservice calling the vehicles semiliquid. We just should have called them ‘sometimes not liquid at all.'” That is now happening in practice, with the label itself being dropped. DBRS Morningstar reported private credit downgrades outpacing upgrades by three or four to one, and Partners Group warned that default rates could double from around 2.5%. Morningstar research indicates investors need a seven-to-ten-year commitment to earn even a 2% yield premium over public debt markets. A repurchase surge reflects investor sentiment and reduced appetite for illiquid wrappers; on its own it is not evidence of credit deterioration in the underlying loans.
What it means for advisors
The gate mechanics that looked theoretical in the marketing are now being tested in public, three quarters running. Our full analysis of the pullback, including the liquidity-queue math and the way the same banks selling these funds are protecting their own balance sheets, is in Morgan Stanley fills 45.8% of private credit redemptions as the banks pull back. For the case that built private credit into advisor portfolios in the first place, see our coverage of interval funds crossing $277 billion and public-private model portfolios. For the Q2 read on whether the wave has peaked, and why met caps are not the same as returning demand, see did the redemption wave peak?
Last updated July 27, 2026. This monitor is provided for information only and is not investment advice. Figures are compiled from public reporting and fund disclosures and are accurate as of the dates shown; reliance on any information is at the reader’s sole risk.