Goldman private credit fund defies industry elevated withdrawal trend yet again

(Corrects to remove extraneous word from headline)

Sept 29 (Reuters) - Goldman Sachs' private credit fund said ​on Tuesday that investor requests to pull money further slowed down in the third-quarter tender offer, with redemption pressure easing across ‌the broader industry.

The $18.2 billion GS Credit fund once again outperformed most other private credit players, ⁠with investors seeking to pull just ​2% of shares in the ⁠latest tender offer, compared with 3.2% in the prior quarter. Its ‌repurchase requests have remained ‌below the customary 5% limit since inception.

Meanwhile, withdrawal requests at ⁠the biggest non-traded private credit funds have ⁠ranged from 10% to over 16% of shares in the third-quarter tender offers unveiled so far. Data from Blue Owl funds is expected in the coming days.

Rival funds have grappled with elevated redemption requests throughout 2026, driven by concerns about lending standards and whether ‌software companies that have borrowed heavily from ​direct lenders will weather AI disruption.

That said, redemption pressure at major funds is showing signs of easing as asset managers clear backlogs of withdrawal requests and investor sentiment rebounds from recent turbulence.

A huge chunk of GS Credit investors come from Goldman's private wealth channels, who have been long-term investors in the private credit space and can ​tolerate illiquidity, Reuters has reported.

"The concerns around software-related credit quality that dominated ‌headlines earlier in ‌2026 have ⁠begun to moderate. While Q1's "SaaSpocalypse" narrative and Q2's enterprise software spend uncertainty drove aggressive spread widening, the Q3 landscape has shifted meaningfully," GS Credit said.

On the subscriptions side, GS Credit said it generated roughly $400 million of ‌gross inflows during the ​quarter. Its Class I shares have delivered ‌a roughly 9.4% total ⁠return since ​inception through August 31, 2026.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by ​Vijay Kishore)

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