Congress is pressing major private equity firms—including Apollo Global Management, KKR & Co., Carlyle Group, BlackRock and Blue Owl Capital—for detailed disclosures on their private credit operations.
The U.S. House Financial Services Committee wants info on sales practices, leverage, fees, incentives, audits, risk management, and potential economic vulnerabilities, according to Bloomberg.
This news comes as the private credit sector has experienced significant volatility in recent weeks. Rising rates, tighter liquidity, and a broader risk-off environment have combined to squeeze a corner of finance that expanded rapidly during the easy money era.
Oaktree Capital Management elected to fully satisfy all redemption requests, representing 8.5% in its private credit fund for the first quarter.
Meanwhile, Morgan Stanley (NYSE:MS) curbed redemptions after investors sought to withdraw nearly 11% of shares from its North Haven Private Income Fund …
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