Private credit roundup: Secondary buyers offer fund investors liquidity at steep discounts

Blackstone

25/09/2026 17:13

Sept 25 (Reuters) - Investors in some of the largest non-traded private credit funds are being offered another route to liquidity, with secondary buyers bidding for shares at double-digit discounts to reported net asset values.
Cox Capital Partners this week launched tender offers for Class I shares of Blackstone Private Credit Fund and HPS Corporate Lending Fund after both vehicles' third-quarter repurchase programmes were oversubscribed.
BCRED received repurchase requests equivalent to about 10% of outstanding shares and HPS about 11.5%, while their fund-run programmes typically target quarterly repurchases of around 5%.
Cox is offering $20.65 per BCRED share, a 12.5% discount to the fund's August 31 NAV of $23.60, and $20.17 per HPS share, a 17.5% discount to its July 31 NAV of $24.45.
The offers give shareholders seeking immediate liquidity an alternative to waiting for quarterly fund repurchases, albeit at a discount to reported NAV.
The initial offers cover up to $20 million of shares in each fund, although Cox has reserved the right to purchase additional shares under the tender terms.
The offers come as redemption pressure across non-traded private credit funds shows signs of easing, although sizeable backlogs remain.
Ares Management's ARES.N $22.7 billion Strategic Income Fund received third-quarter redemption requests equivalent to 13.1% of shares, down from 14.4% in the previous quarter. 
The fund said much of the demand reflected investors resubmitting previously unfulfilled tenders, while net new redemption demand was about 3% of NAV.
Apollo's Debt Solutions BDC recorded requests equivalent to 14.7% of shares, down from 16.8%, while Morgan Stanley's North Haven Private Income Fund saw requests edge down to 11.4% from 11.6%. Both funds said a large share of the latest requests came from investors resubmitting earlier unfulfilled requests.
Industry-wide data point in the same direction.
Across 13 non-traded BDCs that price shares at NAV, third-quarter redemption requests totalled $9.6 billion, or 10.1% of estimated tender-offer NAV, down from 11.2% in the second quarter, according to Robert A. Stanger & Co. The funds met about 47% of requests, leaving $5.1 billion unmet.
The backlog remains significant. Stanger said eight NAV BDCs representing about $28 billion of estimated NAV had yet to report third-quarter tender results, including Blue Owl Credit Income Corp and Blue Owl Technology Income Corp. Those funds received second-quarter redemption requests equivalent to 18.8% and 38.1% of NAV, respectively.

 (Reporting by Patturaja Murugaboopathy. Editing by Mark Potter)
 ((patturaja.muruga@thomsonreuters.com;))