Are you concerned about your investment in Blackstone Private Credit Fund (BCRED)?
The White Law Group is continues to investigate potential securities claims involving financial advisors and brokerage firms that may have unsuitably recommended the Blackstone Private Credit Fund (BCRED) to retail investors.
Rising Redemption Requests – Liquidity and Risks
Recent industry data suggests that investor sentiment toward large non-traded BDCs has weakened. According to a January 2026 Bloomberg report, investors requested more than $2.9 billion in redemptions from non-traded BDCs with over $1 billion in assets during the fourth quarter of 2025—an increase of approximately 200% from the prior quarter. The surge in withdrawal requests affected several of the largest private credit managers, including Blackstone Inc., Ares Management, and Blue Owl Capital.
The increase in redemptions reflects growing investor concerns about lower returns, rising credit stress, valuation transparency, and heightened regulatory scrutiny within the $1.7 trillion private credit market. While many non-traded BDCs continue to attract new inflows and have, to date, honored redemption requests, the trend underscores the structural liquidity limitations of these products—particularly during periods of market stress.
Notably, investors in Blackstone Private Credit Fund (BCRED), the largest non-traded BDC in the sector, reportedly sought to redeem approximately $2.1 billion, or about 4.5% of the fund’s net assets, during the quarter. Although BCRED and similar funds impose redemption limits and discretion over liquidity events, rising withdrawal activity may signal increasing pressure on non-traded BDCs and highlights risks that retail investors may not have fully understood at the time of purchase.
About Blackstone Private Credit Fund (BCRED)
Blackstone Private Credit Fund, sponsored by Blackstone Inc. (NYSE: BX), is a publicly registered, non-traded business development company (BDC). As of September 30, 2025, BCRED reported a net asset value (NAV) per share of $24.97, a 0.48% decline from $25.09 the previous month.
The fund’s board also announced a lower monthly distribution of $0.20 per share for October 2025, down from $0.22 in September. Despite the dip in distributions and NAV, BCRED’s aggregate NAV increased slightly to $46.7 billion, while the fair value of its investment portfolio reached approximately $76.5 billion.
BCRED reported $31.4 billion in debt outstanding, resulting in a debt-to-equity ratio of 0.65x, indicating moderate leverage. The fund maintains around $38.5 billion in committed debt capacity, with roughly 90% of leverage based on floating rates.
Risks of Investing in Non-Traded BDCs
Non-traded BDCs like BCRED are often marketed for their income potential, but they come with significant risks that may not be suitable for many investors:
- Illiquidity – Shares are not listed on public exchanges and may be difficult to sell.
- High Commissions and Fees – These products often carry upfront commissions of up to 10%, reducing potential returns.
- Valuation Concerns – NAVs are based on internal assessments rather than market prices.
- Distribution Cuts – Cash flow and distribution rates can fluctuate, reducing income for investors.
Because of these factors, many investors do not fully understand the risks until after their capital has been tied up for years.
Brokerage Firm Responsibilities
Financial advisors and broker-dealers have a duty to recommend investments that are appropriate for each client’s financial situation, goals, and risk tolerance. When brokers fail to perform adequate due diligence or misrepresent the risks associated with non-traded BDCs, they may be liable for investment losses.
Recovering Investment Losses through FINRA Arbitration
Investors who have suffered losses in BCRED or other non-traded BDCs may be able to recover damages through FINRA arbitration against the firms that sold these investments. The White Law Group represents investors nationwide in claims involving unsuitable recommendations, misrepresentation, and failure to supervise.
Free Consultation with a Securities Attorney
If you are concerned about your investment in Blackstone Private Credit Fund (BCRED) or other non-traded BDCs, call The White Law Group at (888) 637-5510 for a free consultation. Our securities attorneys have handled hundreds of claims involving complex alternative investments, helping investors across the country recover millions of dollars through FINRA arbitration.
To learn more, please visit www.whitesecuritieslaw.com.
FAQs
Why are investors requesting redemptions from non-traded BDCs like BCRED?
Investor redemption requests have increased across large non-traded BDCs amid concerns about lower returns, potential credit stress in private loans, valuation transparency, and broader economic uncertainty. Rising redemption activity highlights how quickly investor sentiment can change, especially when income declines or market conditions deteriorate.
Why are BCRED distributions decreasing?
Distributions can decline when income from the underlying loan portfolio decreases, leverage costs increase, or management adjusts payout ratios to preserve capital.
Can I sell my BCRED shares?
Liquidity options for non-traded BDCs are limited. Shares generally can’t be sold easily, and redemptions are often subject to restrictions or suspension.
