Private credit is in big trouble. Slow motion bank run
byu/RobertBartus inEconomyCharts
Carlyle just capped redemptions on its flagship private credit fund after investors slammed in 15.7 percent withdrawal requests, the latest gate in a wave hitting semi-liquid vehicles. That liquidity squeeze rolls straight into bank balance sheets and regional lenders who already lag the broader tape.
- The Carlyle Tactical Private Credit Fund (CTAC), which manages over $7 billion, received repurchase requests totaling roughly 15.7% of outstanding shares in Q1 2026.
- Per the fund’s rules, Carlyle is limiting redemptions to the standard 5% quarterly cap. Investors who requested ~$750 million will only receive about $240 million.
- This comes amid growing investor nervousness in the private credit space, with similar gates or limits recently imposed by other managers (Morgan Stanley, BlackRock, Apollo, etc.).
Hedge funds are extremely short (as reported by ZeroHedge and Goldman Sachs).
It seems they are not following @BraVoCycles, as I have been predicting a late March or early April reversal for a few months. Watch the video for cycle projections:https://t.co/zLhuudxWuL pic.twitter.com/bzyYXMIIGk
— BraVoCycles Newsletter (@BraVoCycles) April 10, 2026
h/t Accurate_Shift_3118