KKR & Co. (NYSE:KKR) has become the latest private equity firm to place a limit on withdrawals in its private credit fund, mirroring others who have done so recently as the private credit market experiences a rough patch.

The firm capped withdrawals in its asset-based finance fund K-ABF at 5% following redemption requests of approximately $38.4 million, 7.2%, KKR told investors, Bloomberg reported.

K-ABF, launched in 2025, is an income fund focused on private credit solutions for investors seeking diversification and access to the large and fast-growing Asset-Based Finance (ABF) universe, KKR's website reveals. At least 80% of the portfolio's assets are ABF investments.

KKR added that payouts will be allocated proportionally, with investors receiving roughly 69% of their redemption requests. KKR explained that this approach was taken to maintain the overall balance and structure of the portfolio.

Other investment firms have placed caps on redemptions of private credit funds, amid concerns that software is becoming irrelevant due to advances in artificial intelligence.

Morgan Stanley (NYSE:MS) also curbed redemptions after investors sought to withdraw nearly 11% of shares from its North Haven Private Income Fund (PIF), and BlackRock limited withdrawals from its $26 billion HLEND fund after redemption requests hit 9.3% of net asset value.

Meanwhile, some firms have chosen to fully satisfy all redemption requests.

Oaktree Capital Management allowed redemptions of 8.5% in its private credit fund in the first quarter, while Blackstone (NYSE:BX) lifted its usual 5% redemption cap to 7% after its $82 billion BCRED fund saw a record 7.9% withdrawal requests.

The pressure is also forcing traditional banks to pull back. JPMorgan Chase & Co.(NYSE:JPM) has started "restricting lending to loans associated with software companies" in its private credit funds as a precautionary measure.

Additionally, the bank has reportedly "reduced the value of some loans to private credit funds" following a review of how market turmoil—specifically AI's potential to erode software earnings—is impacting the sector.

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