The rush for exits in private credit is prompting scrutiny of the sector's less-liquid structures and expansion into the retail wealth space. Blackstone, the world's largest alternative investment manager, has been hit by a surge in requests from investors to withdraw from its flagship private credit strategy, the $82 billion Blackstone Private Credit Fund, after investors sought to withdraw a record 7.9% of assets from the fund. This comes after Blue Owl Capital announced it was ending quarterly liquidity payments in its Blue Owl Corporation II fund aimed at U.S. retail investors. Concerns over late-cycle loan quality, AI-related risks in software portfolios, and fears of further individual blow-ups following the First Brands and Tricolor implosions last year. The industry's focus on retail investment is now being closely scrutinized by experts. Blackstones' CEO, Jon Gray, acknowledged that the risk of private credit firms failing to meet withdrawals is not beneficial in the near term for the sector but acknowledged that individual investors and financial advisors understand the product's design. Moody's Ratings has warned that private credit's ability to deliver outsized returns while offering retail-like liquidity will continue to be tested.