ECB’s Villeroy Sounds Warning on Private Credit Liquidity Risks

The rise of semi-liquid vehicles meant to attract retail investors could pose a risk to fund managers as high-profile names like Blue Owl Capital Inc., Blackstone Inc. and BlackRock Inc. have received a wave of withdrawal requests, according to the Governor of the Bank of France.

How asset managers respond to the recent developments is a test of whether the $1.8 trillion private credit sector can handle mismatches in liquidity, Francois Villeroy de Galhau said at the Bloomberg Future of Finance conference in Paris.