Loading ...The Kobeissi Letter
@KobeissiLetter
Stress in the US private credit market is intensifying:
Investors requested a record -$15.6 billion in redemptions from private credit funds in Q2 2026.
This marks the 3rd consecutive quarterly increase by a total of +$13 billion, or +500%.
Furthermore, just 38% of these requests were met, down from 53% in Q1 2026, leaving $9.7 billion in unmet redemptions, the largest backlog on record.
Blue Owl’s flagship fund, Blue Owl Credit Income, was the most impacted at 19% of shares outstanding, with 14% unmet, the highest redemption rate among its large competitors.
This was followed by Apollo, at 16% requested with 11% unmet, and Ares, at 14% requested with 9% unmet.
Meanwhile, inflows into the private credit industry declined -75% since January to ~$500 million in May, the smallest monthly intake in at least 18 months.
The private credit crisis shows no signs of slowing.
