Blackstone has restricted withdrawals from its $79 billion Blackstone Private Credit (BCRED) fund after a surge in investor redemption requests raised concerns about liquidity in private markets.

The fund capped withdrawals at 5% of shares after requests reached 10% in the second quarter, following similar moves by other private market firms.

The action comes amid broader industry volatility, with firms like Partners Group also limiting redemptions and warning that stress is spreading across private credit and equity markets.

Blackstone said such caps are designed to protect long-term investors and stabilize returns, even as investor demand for liquidity increases, CNBC has reported.

Despite the concerns, Blackstone shares rose in trading after the announcement, reflecting mixed investor reactions.