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Morgan Stanley and Cliffwater limit private credit withdrawals

Financial Times
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⚡ Quantum Brief
Two major financial institutions imposed sudden withdrawal restrictions on private credit funds in March 2026, citing liquidity pressures amid rising investor redemption requests. Morgan Stanley and Cliffwater limited client withdrawals from select private credit vehicles, marking a rare move in the typically illiquid asset class. The restrictions follow broader market volatility and tightening monetary conditions, forcing firms to prioritize fund stability over investor liquidity. Analysts warn the curbs may signal deeper systemic stress in private credit markets, where $1.7 trillion in assets face repayment risks. Investors now face extended lock-up periods, with some funds delaying redemptions by up to 12 months.
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