Goldman Sachs' Private Credit Fund Defies Industry Withdrawal Trend Again

Goldman Sachs' private credit fund, GS Credit, has once again outperformed its industry peers in terms of investor withdrawals. The $18.2 billion fund's third-quarter tender offer saw investors seeking to pull just 2% of shares, compared with 3.2% in the prior quarter. This is a significant improvement from the customary 5% limit.

The GS Credit fund has been able to maintain low redemption requests due in part to its long-term investor base, which comes primarily from Goldman's private wealth channels. These investors are accustomed to illiquidity and have been less affected by concerns about lending standards and software company credit quality.

The broader industry has seen elevated withdrawal requests throughout 2026, driven by worries about the impact of AI disruption on software companies that have borrowed heavily from direct lenders. However, redemption pressure is showing signs of easing as asset managers clear backlogs of withdrawal requests and investor sentiment improves.