MW More pain in private credit as JPMorgan reportedly tightening lending while a $33 bln fund sees heavy redemptions

By Steve Goldstein

JPMorgan reportedly is marking down the value of loans in private-credit portfolios.

The troubled private-credit industry was under further pressure after a report that JPMorgan Chase was tightening its lending criteria while a $33 billion fund was reported to have seen heavy withdrawals.

The Financial Times, citing people familiar with the matter, said the banking giant has marked down the value of loans in private-credit portfolios. The report said the move didn't trigger margin calls but will have the impact of curtailing lending into the sector. JPMorgan $(JPM)$ didn't immediately respond to a message seeking comment.

The move comes as Bloomberg reported heavy redemptions from Cliffwater's flagship private-credit fund that had $33 billion in assets. The fund is structured to allow for up to 5% of its shares each quarter to be redeemed, and for the fund manager to buy up to 2% more, but the report said the requests are in excess of that amount.

Many private-credit funds have seen heavy outflows, as investors worry about their exposure to middle-market software companies, which were the recipients of lending during a 2021 wave of deals.

Blackstone (BX) turned to its own employees to help meet demand for redemptions from a private-capital fund while BlackRock $(BLK)$ capped withdrawals from one of their funds.

The struggles of the private-capital funds have bled into the stock prices of their managers. Blue Owl Capital $(OWL)$ shares have slumped 37% this year as Ares Management $(ARES)$ shares have retreated by 33%.

-Steve Goldstein

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March 11, 2026 05:32 ET (09:32 GMT)

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