Goldman's Private Credit Fund Sees Redemption Pressure Ease

Goldman Sachs' $18.2 billion private credit fund, GS Credit, reported that investor redemptions have cooled down in its third-quarter tender offer. The firm saw a redemption request of 2%, which is down from 3.2% the previous quarter.

The GS Credit fund offers periodic 'tender offers' for exits, allowing investors to redeem their shares at set intervals. Non-traded private credit funds have faced elevated withdrawal requests this year due to concerns over underwriting standards and the resilience of highly leveraged software borrowers.

However, Goldman Sachs said that sentiment has improved as earlier worries about software-credit faded. The fund still attracted gross inflows of roughly $400 million during the quarter.