Since mid-September, stock markets have priced in the credit freeze in private lending. Blackstone (BX) traded at a high of $190 last year but fell steadily. In 2026, the stock lost 30.7% of its value.
On March 10, Blackstone and Blue Owl Capital (OWL) both agreed to take a minority stake in Atlas Holdings. The investment should boost confidence in BX and OWL stock. However, when Blue Owl limited redemptions for one of its private equity funds, it created a credit freeze scare.
On March 12, Morgan Stanley (MS) limited redemptions of its private credit. Its North Haven Private Income Fund will let investors withdraw 5%. This is below the requested withdrawal of nearly 11% of PIF’s outstanding shares.
Blackstone President Jon Gray characterized the worries of record redemptions as “a ton of noise.” He tried to boost confidence by mentioning in a CNBC interview that institutional clients are still allocating “significant” amounts to private credit.
If the fear accelerates for private credit funds, another leg down may come. Last week, shares of T. Rowe Price (TROW) fell. Brookfield Asset Management (BAM) traded at a new 52-week low.
Earlier this month, BlackRock (BLK) limited withdrawals of its private credit fund. To meet withdrawal demand, it increased the repurchase limit from 5% to 7% on March 6.
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