Private Credit Is Popular Despite Pullback: BlackRock CEO Larry Fink

BlackRock (NYSE:BLK) CEO Larry Fink emphasized that "headlines don't reflect what clients are telling us," noting a surge in demand for private credit from large institutional investors, even as retail investors remain wary of the sector.

"If anything, with some of the retail pullback, we've seen stronger institutional fundraising and deployment. Some of the spreads we see today in direct lending and asset-based finance are among the most attractive during this market pullback," Fink said on BlackRock's Q1 2026 earnings call.

He added that BlackRock remains "very constructive on institutional fundraising in and around private credit strategies."

Despite the broader slowdown, several asset managers have demonstrated that investor demand for private credit assets remains resilient. 

Ares Management, Blackstone, and Goldman Sachs are just a few of the asset managers that have capitalized on the market dislocation, launching new funds and raising billions of dollars for credit vehicles.

In the first quarter, BlackRock reported $130 billion in net inflows, fueling 8% organic base fee growth—the firm's highest quarterly increase in five years.

"BlackRock is a scale operator across public markets, private markets, and technology. That combination is proving more valuable every day. Capital is in motion as market fundamentals and provider relationships are re-evaluated, and BlackRock is the trusted destination," Fink added.

Private markets net inflows totaled $9 billion, driven primarily by private credit and infrastructure. The firm attributed these inflows to robust momentum in fundraising and deployment.

Fink also noted that the firm has sustained "long-term demand for institutional-grade private credit."

Private Credit Stress

Investors continue to raise concerns regarding the current environment. As a result, banks and asset managers have issued warnings or restricted lending in their private credit portfolios.

Last month, BlackRock limited withdrawals from its $26 billion HPS Corporate Lending Fund after redemption requests surged to roughly 9.3% of the fund’s net asset value. The asset manager approved about $620 million in redemptions, hitting a 5% quarterly threshold that allows the fund to restrict additional withdrawals.

Morgan Stanley (NYSE:MS) curbed redemptions after investors sought to withdraw nearly 11% of shares from its North Haven Private Income Fund, while JPMorgan Chase & Co. (NYSE:JPM) has begun restricting lending to software companies in its private credit funds, along with several other banks and institutions.

JPMorgan CEO and chairman Jamie Dimon noted that private credit probably does not present a systemic risk, reiterating a similar sentiment from Federal Reserve Chair Jerome Powell's talk at Harvard University.

Photo: Photo Agency/Shutterstock