Goldman Sachs (NYSE:GS) revealed that its private credit fund saw redemption requests of just under 5% of shares in the first quarter, amid an industry-wide trend of increased redemptions.
Firms such as Apollo Global, Ares Management, BlackRock, JPMorgan and Morgan Stanley have all capped redemptions in recent weeks after investors have requested a large amount of withdrawal requests driven by concerns surrounding the private credit sector.
Oaktree Capital Management elected to fully satisfy all redemption requests for 8.5% of its private credit fund for the first quarter. Oaktree Strategic Credit Fund (OSC) plans to repurchase approximately 13.9 million shares, representing 6.8% of its outstanding shares, Reuters reported.
Goldman’s ability to handle all redemptions without breaching its threshold may point to uneven stress across the industry. Many investors in Goldman’s fund come from its private wealth channels, known for their tolerance of illiquidity, a source familiar with the matter told Reuters.
Federal Reserve Chair Jerome Powell noted during a talk at Harvard University last week that the turmoil the private credit sector has seen in recent weeks is not indicative of a broader risk to the financial system.
Powell added that the $3 trillion private credit industry is a “relatively small slice” of the asset pool and is something that the Fed is watching “super carefully,” MSN reported.
Goldman maintains that the overall health of the private credit industry remains robust, with low default rates …
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