Investors in the fund sought to redeem 10 percent of their shares in the second quarter, Blackstone said, rising from the first quarter.
It said it would restrict redemptions from the US$79 billion fund to five percent in the second quarter.
Private credit funds are investment vehicles that pool money from investors to provide loans directly to private companies.
Blackstone’s move comes after other investment giants earlier limited redemptions as well.
Financing through private credit has risen significantly in recent years, raising worries about a sector much less regulated than conventional banks.
Some of the private credit funds receiving outsized redemption requests have financed software companies seen as risky bets in light of advances in artificial intelligence.
More recently, investors have been growing cautious over the prospects of lending to software companies.
This week, investment group Cliffwater also said it capped redemptions from a lending pool at five percent after withdrawal requests hit 17 percent in the second quarter.
Others are expected to report their second quarter redemptions soon, after withdrawal requests in the industry climbed in the first quarter.
In April, asset manager Blue Owl said it was capping its redemptions at five percent after investors accounting for more than 20 percent of shares in two funds sought payouts.
Earlier this year, the US Treasury Department announced plans to convene meetings with domestic and international regulators focused on private credit markets.
The US Federal Reserve is also monitoring the sector. (AFP)
