The Institutional Risk Analyst

Several major private credit firms capped investor withdrawals this week, as an accelerated exit wave hit the industry. Firms typically limited redemptions to their customary 5% quarterly threshold. The Ares Strategic Income Fund capped withdrawals at 5% after receiving requests to redeem 14.4% of shares. And Apollo's flagship $26 billion retail-focused fund curbed redemptions at 5% after investors attempted to cash out 16.8% of their holdings.

In Q1 2026, the top seven banks continued to see asset returns decline, but funding costs fell even more. Net interest margin (NIM) decreased from the prior quarter to 3.31 percent, but loan growth driven by AI nonbank lending continued, rising 7.1 percent from the same quarter in 2025.