UPDATE 1-BlackRock limits withdrawals at private credit fund as redemptions mount

BlackRock, Inc. -1.31% Pre

BlackRock, Inc.

BLK

968.46

960.03

-1.31%

-0.87% Pre

Changes sourcing, Adds details throughout

March 6 (Reuters) - BlackRock BLK.N said on Friday it has put limits on withdrawals from a flagship private credit fund after a surge in redemption requests, making it the latest company responding to rising investor caution in the asset class.

Shares of the asset manager fell 3.4% before the bell after the Financial Times first reported the news.

BlackRock's $26 billion HPS Corporate Lending Fund received withdrawal requests worth $1.2 billion in the first quarter, or roughly 9.3% of its net asset value.

HPS Investment Partners told investors it would pay out $620 million as part of the quarterly redemption, hitting a 5% threshold that allows the asset manager to restrict further withdrawals.

BlackRock bought HPS in a $12 billion deal last year, as part of its push to expand into the burgeoning private credit sector.



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