00:00Investors are again seeking exits from private credit funds this week.
00:03Two new waves of redemption requests, 11.6% from a fund at Morgan Stanley and 16.8%.
00:09Requests from Apollo's largest non-traded BDC, a credit fund for retail investors.
00:14Both those firms, as they promised to do in the documents, capped exits at 5%.
00:18Olivia Fishlow has been tirelessly covering all the private credit stories and she joins us now.
00:23I mean, Olivia, it's just a continuation.
00:25Should it be surprising that we're still getting in excess of the redemption caps requests to exit these funds?
00:31I don't think it's too surprising.
00:33It is what we've expected that this quarter, the next time of redemptions, that they would pick up again.
00:38But I think what we're seeing is the change of the investor base.
00:42We're hearing that more U.S. investors are or less U.S. investors are asking to redeem.
00:46And it's coming for more offshore investors, which I think has been interesting for this time around.
00:51Is that a good thing for these funds or a bad thing if, like, more different types of investors are
00:56doing this?
00:56I think it's too early to say.
00:58I think we'll probably have to wait again until next quarter to see if this, like, trend continues.
01:03But I think it does say that every month, even when things aren't reported, the views of investors are changing,
01:09even if we aren't seeing it ourselves.
01:11By the way, is there an expectation that this, like, slows down sometime soon?
01:14Or are we kind of nearing, like, the end of this rush to the exits?
01:17I think it will now start to change fund to fund because we are seeing as requests move up and
01:22more investors are gated, they'll redeem next quarter.
01:25So I think we still have some time before it slows down.
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