Barings Private Credit Corp filled less than half of its quarterly redemption requests for a third straight quarter, as demand to exit topped 10% of shares against a 5% cap.
Wealthy investors who poured money into private credit funds through the wealth-management channel are discovering the limits of quarterly liquidity.
Barings Private Credit Corp. prorated its third-quarter tender offer for the third consecutive quarter, according to a letter to shareholders dated . Investors asked to redeem about 10.68% of the fund's shares outstanding as of . The fund caps quarterly repurchases at 5%, so it accepted 7,080,516 shares, filling about 46.84% of each request.
The pattern has held all year. The first-quarter fill rate was about 44.3% and the second quarter's about 46.01%. As recently as December 2025, the fund met every request in full, when only about 3.8% of shares were tendered.
Accepted shares are bought at the net asset value. The fund reported a net total return of 4.8% for the year through .
Reading the queue
Redemption requests are a measure of investor sentiment, not of portfolio losses, and holders who expect to be prorated have an incentive to ask for more than they need. Still, the shift from fully met requests at the end of 2025 to a demand rate roughly double the cap is a meaningful change in behavior.
A separate experiment shows how secondary markets are trying to fill the gap. An auction run by Nasdaq Fund Secondaries and LODAS Markets with Harrison Street Private Wealth sold 91% of the interval-fund shares offered, with a portion of trades clearing at a 15% discount to net asset value.
That discount is the other side of the redemption queue. Investors who cannot get out at full value through the front door can exit through a secondary sale, but at a price.
What to watch
The fourth-quarter tender will show whether requests are stabilizing near 10% or still climbing. A widening gap between demand and the 5% cap would put more pressure on funds to expand secondary options or to adjust their redemption terms.