The shift toward semi-liquid structures — which offer periodic redemptions while holding long-dated, illiquid assets — is what concerns regulators most.
Bloomberg reported that in early 2026, wealthy investors sought to pull about US$20bn from private credit funds but were only able to redeem about half,
Funds managed by BlackRock and Morgan Stanley restricted withdrawals as redemptions surged, Reuters reported, while according to Bloomberg the Cliffwater private credit fund saw redemption requests reach 14 percent of its US$33bn in assets.
Bank of Canada governor Tiff Macklem, who oversees the FSB’s top risk committee, said earlier this year that “private credit is not suitable for everybody” and pointed to a potential need for additional “guardrails” so retail investors properly understand the constraints on accessing their cash.
Direct bank lending to private credit funds looks manageable on paper — FSB member data captured around US$220bn in drawn and undrawn credit lines, less than 0.5 percent of total bank assets.