Barings' private credit fund limits withdrawals after redemption requests surge
Barings has taken a measured approach by limiting investor withdrawals from its private credit fund, allowing only 5% redemptions despite requests for 11.3% in the initial quarter. This decision is designed to protect the interests of long-term sh...
By Reuters |
Asset manager Barings capped redemptions at one of its private credit funds at 5% of shares after investors sought to withdraw 11.3% in the first quarter, according to a regulatory filing on Monday.
Private credit funds have grappled with high redemption requests in recent months as jittery retail investors bolt for the door amid concerns over transparency, valuations and artificial intelligence-related disruption.
Non-traded funds, like Barings Private Credit, offer quarterly liquidity to investors through tender offers typically of up to 5% of shares.
Barings has accepted to purchase on a pro-rata basis roughly 44.3% of shares tendered in its offer, according to the filing.
"The fund's liquidity framework is designed to protect the long-term interests of all shareholders. By applying this approach consistently, we seek to balance near-term liquidity needs with prudent stewardship of capital for both exiting and remaining investors," the fund said in a shareholder letter.
Private credit funds have grappled with high redemption requests in recent months as jittery retail investors bolt for the door amid concerns over transparency, valuations and artificial intelligence-related disruption.
Non-traded funds, like Barings Private Credit, offer quarterly liquidity to investors through tender offers typically of up to 5% of shares.
Barings has accepted to purchase on a pro-rata basis roughly 44.3% of shares tendered in its offer, according to the filing.
"The fund's liquidity framework is designed to protect the long-term interests of all shareholders. By applying this approach consistently, we seek to balance near-term liquidity needs with prudent stewardship of capital for both exiting and remaining investors," the fund said in a shareholder letter.
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