🚨Several private equity credit funds on Wall Street are facing a redemption crisis, and the Federal Reserve has begun requiring U.S. banks to explain their private credit risk exposures——

🔺BlackRock's $26 billion fund has experienced about $1.2 billion in redemptions, ultimately only paying out approximately $620 million.
🔺Blackstone has restricted redemptions, with some private credit funds only paying about 70% of the requested amount.
🔺Cliffwater's flagship private credit fund has recently faced a large volume of redemption requests.
🔺Blue Owl announced further restrictions on redemptions for one of its funds, resulting in investors seeking to exit receiving less than a quarter of their requested amount.
🔺Shiling Asset Management stated that due to recent high redemption requests, they will only fulfill 11% of investors' desired redemption amounts.
The global private equity fund market now exceeds $1.7 trillion and is deeply integrated with the mainstream financial system;
Private loans are usually bilateral agreements and lack standardized pricing mechanisms, with almost no liquidity themselves, forcing sales of publicly traded stocks or distressed sale of underlying assets.
The terrifying part is that many investors probably are not even aware that they have indirectly participated.
This is Wall Street—if it were the domestic P2P industry in the past, it would definitely be regarded as a warning sign of a potential collapse!