Goldman Sachs' private credit fund received redemption requests totaling about 3.24% of outstanding shares in the second quarter, staying below its 5% quarterly repurchase cap. The firm honored all redemption requests in full and added $275 million in gross inflows during the quarter, according to a shareholder letter. This performance contrasts with broader industry turbulence, where repurchase demand for other large non-traded business development companies (BDCs) has generally ranged from approximately 10% to nearly 17% of shares outstanding.

Industry Comparison and Peer Performance

Goldman compared its experience with that of other large managers of non-traded BDCs, a structure that typically invests client capital in private loans. The firm noted that its ability to handle all redemptions without breaching its threshold may point to uneven stress across the industry, as many investors in Goldman’s fund come from its private wealth channels, known for their tolerance of illiquidity.

Peer Pressures and Market Outlook

Morgan Stanley is limiting withdrawals from its flagship private-credit vehicle after investors asked to redeem 11.6% of units outstanding, prompting the fund to satisfy 43% of requests for the quarter. The $7 billion North Haven Private Income Fund will only fulfill part of the second-quarter cash-out requests. Similarly, the flagship private credit fund of Cliffwater LLC capped redemptions at 5% in the second quarter after investors sought to redeem approximately 17% of the fund’s shares. Partners Group is restricting investor withdrawals from its $8.6 billion Global Value SICAV fund after redemption requests exceeded 5% of the net asset value.

Apollo President Jim Zelter stated at Bernstein’s Strategic Decisions Conference in New York that he expects wealthy clients to continue to seek cash back from private credit products after months of net outflows. "I don’t think it was a one-shot," he said of the redemption wave. Zelter warned that redemption pressure could tick higher if some investors try to time the limits. "There may be even a little bit of an increase if people want to game the system," he said, adding, "We are not through the turbulence yet."

Oppenheimer analyst Chris Kotowski has downgraded Goldman Sachs Group from Perform to Underperform. The adjustment signals a shift in the investment firm's perspective on the bank's near-term performance potential.

The revised rating replaces the previous Perform designation assigned to the stock. This move suggests that the shares are now expected to lag behind broader market averages or the analyst's coverage universe.