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Goldman’s Private-Credit Fund Meets Q1 Redemptions as Rivals Gate Withdrawals

Fresh filings point to a split in fund liquidity driven by AI fears.

Overview

  • Goldman Sachs' non-traded business development company, which disclosed results Monday, said investor repurchase requests totaled 4.99% of shares and were fully met under its quarterly limit.
  • Barings Private Credit Corp reported Monday that investors sought to redeem 11.3% of shares, so the fund enforced its 5% cap and paid about 44.3% of each holder’s request.
  • Several large managers capped withdrawals at the standard 5% this quarter after a jump in requests tied to worries that artificial intelligence could weaken software borrowers’ earnings and loan repayability.
  • Goldman reported about $823 million in cash from loan paydowns and sales in the quarter, up from $669 million, and said it was the only peer whose requests came in below the 5% cap.
  • Industry trackers say non-traded vehicles returned a record $7.4 billion to investors in the first quarter, highlighting the strain on semi-liquid funds that promise limited quarterly exits but hold hard-to-sell loans.