Key Takeaways
- • Blackstone Private Credit (BCRED), the largest nonlisted BDC at $48.2 billion in net asset value, reported redemption requests totaling about 7.9% of NAV so far this year, according to Robert A. Stanger & Co., forcing Blackstone to raise its repurchase limit from 5% to 7% and inject $400 million from the firm and employees.
- • BlackRock's HPS Corporate Lending Fund received repurchase requests for about 9.3% of shares outstanding, exceeding its 5% limit for the first time since inception, per an SEC filing.
- • Nonlisted REITs raised $593.1 million in January, up from $466.8 million in December and $416.3 million in November, according to Stanger, as capital shows early signs of rotating from private credit into real estate.
- • Blackstone REIT (BREIT) led the nonlisted REIT sector with $786 million in third-quarter public capital raised, a 53.7% market share, and reported net investment in real estate of $95.7 billion as of end-January per CoStar data.
- • Nonlisted REIT portfolio values, which fell for 11 consecutive quarters with holdings shrinking 12.5%, began rising again in the third and fourth quarters of 2025, per CoStar tracking.
Summary
Private credit funds, once a Wall Street favorite, are now struggling to attract new capital while existing investors seek redemptions. Nonlisted business development companies expanded sharply during the private credit boom, growing from $3.5 billion in capital formation in 2020 to $63.1 billion in 2025, according to Stanger. Fundraising has since fallen nearly 50% from its early 2025 peak.
Blackstone sits at the center of this shift, as it manages both the largest private credit fund, BCRED, and the largest nontraded real estate fund, BREIT. BCRED reported redemption requests of about 7.9% of net asset value year to date, requiring Blackstone to lift its repurchase limit from 5% to 7% and contribute $400 million from the firm and employees. Other managers have seen similar pressure: BlackRock's HPS Corporate Lending Fund received requests to repurchase about 9.3% of shares, and Blue Owl Technology Income repurchased over 15% of shares after raising its offer from 5% to roughly 19%.
Stanger's Greg DiSalvo said falling interest rates make lending less attractive while improving the prospects for buying and selling property, which should lift return expectations for REITs. In the interim, mortgage and net lease REITs have attracted the most capital. Nonlisted REITs raised $593.1 million in January, according to Stanger, and CoStar data show nonlisted REITs reporting increases in net real estate investment over two consecutive quarters before this quarter.
Johnathan Rickman of Blue Vault Partners said "2026 is likely to see the rise of private real estate," citing falling borrowing costs and stabilizing or improving property fundamentals. Blackstone REIT, which has dominated the sector since its 2016 launch, has an estimated $83.3 billion raised since inception, per Rickman. BREIT has posted net positive inflows in recent reports, and repurchases are at their lowest since February 2022. A Blackstone spokesperson attributed the net positive flows to the fund's differentiated performance and said the REIT remains well-positioned, citing its data center business QTS and its logistics platform.
Blackstone sits at the center of this shift, as it manages both the largest private credit fund, BCRED, and the largest nontraded real estate fund, BREIT. BCRED reported redemption requests of about 7.9% of net asset value year to date, requiring Blackstone to lift its repurchase limit from 5% to 7% and contribute $400 million from the firm and employees. Other managers have seen similar pressure: BlackRock's HPS Corporate Lending Fund received requests to repurchase about 9.3% of shares, and Blue Owl Technology Income repurchased over 15% of shares after raising its offer from 5% to roughly 19%.
Stanger's Greg DiSalvo said falling interest rates make lending less attractive while improving the prospects for buying and selling property, which should lift return expectations for REITs. In the interim, mortgage and net lease REITs have attracted the most capital. Nonlisted REITs raised $593.1 million in January, according to Stanger, and CoStar data show nonlisted REITs reporting increases in net real estate investment over two consecutive quarters before this quarter.
Johnathan Rickman of Blue Vault Partners said "2026 is likely to see the rise of private real estate," citing falling borrowing costs and stabilizing or improving property fundamentals. Blackstone REIT, which has dominated the sector since its 2016 launch, has an estimated $83.3 billion raised since inception, per Rickman. BREIT has posted net positive inflows in recent reports, and repurchases are at their lowest since February 2022. A Blackstone spokesperson attributed the net positive flows to the fund's differentiated performance and said the REIT remains well-positioned, citing its data center business QTS and its logistics platform.
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