Private-Credit Redemptions Hit $20 Billion as Queues Stretch to Multi-Year Backlogs

Investors pulled $20 billion from private-credit funds in Q1 2026, with some vehicles facing 41% redemption requests against standard 5% quarterly gates. At that pace, a fund would need eight quarters just to clear existing demand. Managers honored only 70% of requests. Fund defaults and shifting risk appetite triggered the surge, exposing liquidity constraints in products marketed as stable alternatives to public credit.