Blackstone's flagship private credit fund faced a wave of redemptions in the first quarter, in the latest negative read-through for the private credit industry. Blackstone stock was sliding 5% in early Tuesday trading.

A securities filing late Monday shows Blackstone allowed investors to redeem 7% of the $82 billion fund in the first quarter, exceeding the typical 5% withdrawal limit. Blackstone employees redeemed an additional 0.9% of the fund.

In all, Blackstone allowed investors to pull $3.7 billion out of its namesake private credit fund, commonly referred to as BCRED. The fund saw new commitments of $2 billion, leaving it with $1.7 billion worth of net withdrawals.

The news is expected to have ripples across the private credit sector, which already has been under stress in light of developments at Blue Owl Capital. The fund sold $1.4 billion in assets and halted redemptions at its private retail debt fund last month, rattling investor confidence.

Blackstone shares dropped 4.7% in premarket trading Tuesday, while Blue Owl fell 4.5%, KKR declined 2.6%, Apollo Global Management fell 2.7%, and Ares Management slipped 2.2%.