❕ Morgan Stanley and Others Limit Withdrawals Amid Rising Redemptions

Morgan Stanley is restricting withdrawals from its $7 billion North Haven Private Income Fund after 11.6% of investors sought redemptions this quarter, up slightly from before.

The bank is fulfilling only about 43% of requests.

Apollo paused withdrawals from a large private credit fund after redemption requests hit $2.4 billion (16.8%), imposing a 5% quarterly cap.

Partners Group, with an $8.6 billion fund, limited withdrawals after requests surged to 9.8%, nearly double its limit. The Swiss firm’s shares fell 13% in Zurich.

Blackstone Mortgage Trust issued a $343 million loan tied to a June 9 default on a Chicago skyscraper. The 2018 loan included about $159 million in commercial mortgage-backed securities.

Redemption gates are often an early sign that stress is spreading through the financial system.

✔️ @venture