BlackRock Inc (NYSE:BLK) shares are dipping on Thursday as fresh stress in the private‑credit market weighs on major asset managers. Morgan Stanley decided to restrict withdrawals at one of its private‑credit funds.

• BlackRock stock is under selling pressure. Why is BLK stock trading lower?

Morgan Stanley Caps Withdrawals, Triggering Sector‑Wide Jitters

Morgan Stanley revealed in a regulatory filing that it had to limit redemptions at its North Haven Private Income Fund after investors attempted to withdraw nearly 11% of the fund's outstanding shares, Reuters reported. Because the requests exceeded the fund's quarterly limit, investors received only about $169 million, which is less than half of what they sought.

The news lands just weeks after BlackRock slowed withdrawals at its $26 billion HLEND fund when redemption requests reached 9.3% of net assets.

BlackRock's Own Redemption Wave Still Fresh

BlackRock's decision earlier this month to curb withdrawals at HLEND put the firm at the center of the conversation. The move signaled that even the largest asset manager in the world isn't immune to rising redemption pressure. It has fueled speculation that more funds across the industry could face similar constraints.

Morgan Stanley has warned that private credit is navigating a challenging environment: sluggish M&A activity, concerns about credit deterioration and shrinking yields. While the bank says its portfolio remains broadly stable, it also noted that the gap between strong and weak borrowers is widening.

AI‑Linked Credit Risks Add Another Layer Of Concern

Adding to the unease, analysts say investors are becoming more cautious about loans tied to software companies — a major borrower group in private credit — as questions grow about how AI could reshape their long‑term earnings power.

Reuters reported that JPMorgan has already marked down the value of certain software‑related loans held in private‑credit funds. The bank has also begun tightening lending standards for credit tied to the software sector, signaling that lenders are bracing for potential weakness.

Louis Navellier of Navellier & Associates noted that default rates in some private‑credit funds are approaching 9%. While he expects future Federal Reserve rate cuts to ease pressure on variable‑rate loans, he acknowledged that the sector is facing a difficult backdrop.

Analysts also continue to reference JPMorgan CEO Jamie Dimon's warning last fall about "more cockroaches" lurking in the credit markets.

BLK Price Action: BlackRock shares were down 2.74% at $925.15 at the time of publication on Thursday, according to Benzinga Pro.

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