Blackstone Group Inc is trading at $117.01 (+6.10%) in a counterintuitive rally after the firm announced it would limit redemptions from its major private credit fund.
- The Blackstone Private Credit Fund (BCRED) will honor withdrawal requests up to its pre-set limit of 5% of shares outstanding, after receiving requests equal to about 10% of its shares for the second quarter.
- The news comes just a day after the entire private-asset management sector sold off on fears of a liquidity crunch, sparked by a competitor, Partners Group, also limiting redemptions.
- Investors appear to be viewing the widely anticipated move as a sign of stability or that the situation was not as severe as feared, focusing on the firm's ability to manage the outflows amid the recent turmoil.