Cracks in the US private credit market are widening: Investors requested a record -$14.0 billion in redemptions from private credit funds in Q1 2026. This is up +146% from -$5.7 billion in Q4 2025 and +278% higher than the -$3.7 billion in the full year 2024. Meanwhile, just half of those requests were met, leaving ~$7.0 billion in unmet redemptions, the largest backlog on record. Blue Owl Capital was the hardest hit, with investors requesting withdrawals of 41% from its $6.2 billion technology-focused fund and 22% from its $36 billion credit fund, among the highest quarterly redemption requests the industry has ever seen. Following the surge in requests, Blue Owl capped withdrawals at 5% for both funds, leaving ~35% and ~17% of requests unmet, the most in the sector. This is followed by Ares' Strategic Income Fund and Apollo's Debt Solutions Fund, both seeing ~11% in total redemption requests with ~6% unmet each. Pressure in the private credit market is intensifying.(The Kobeissi Letter)