Goldman Private Credit Chief Says Gating Is Feature, Not Bug (1)

One of Goldman Sachs Group Inc.’s private credit chiefs said limits on fund withdrawals are “features and not bugs,” as the $1.8 trillion market comes under increasing pressure from investors looking to exit.

So-called semi-liquid private credit funds typically allow for quarterly redemptions of 5%, with the ability to throw up gates for a set period if requests breach that threshold. Thus far, major firms in the industry including Blackstone Inc. and Blue Owl Capital Inc. have largely met elevated withdrawals or offered other payouts rather than solely restricting investors.

Read more: Blackstone Private Credit Fund Hit by Record ...