Cliffwater's $33 billion flagship fund capped redemptions at 7% after investors sought to pull 14% of their money, a RECORD withdrawal request, according to Bloomberg.

Morgan Stanley also capped withdrawals at 5% from its North Haven Private Income Fund.

This follows BlackRock limiting redemptions last week after investors tried to pull 9.3%.

Adding to the pressure, JPMorgan has marked down the value of software-linked loan portfolios and is limiting lending to private credit groups.

Growing concerns over credit quality, questionable loan valuations, and AI disrupting software borrowers are driving the wave of redemptions.

Meanwhile, BDC markdowns are widespread: FS KKR Capital, $FSK, has seen its premium to NAV collapse by over -40 percentage points over the last 12 months, while Hercules Capital, $HTGC, is down ~-30 points.

Investors want out, but the exits keep getting smaller.

Will the broader market notice?