Damn it, it went viral in the English section last night: a fire in the backyard of BlackRock?! I dug through the raw data and found that everyone was biased. It's not a sudden lightning strike that freezes withdrawals, but the underlying signal is more interesting than just a simple lightning strike HLEND, a private equity credit fund under BlackRock, was suddenly hit with $1.2 billion in redemption applications in Q1 of this year (accounting for almost 9.3% of the total amount). According to the quarterly repurchase rule of 5% of the contract, only 620 million was approved in the end. Attention, this is the first time that HLEND has triggered current limiting since its establishment. Upon closer inspection, it seems that the BlackRock family is not the only one bearing the burden. Next door Blackstone's BCRED was also hit with a record breaking $3.7 billion redemption (7.9%) during the same period. However, Blackstone was quite aggressive, directly increasing the quota to 7%. The company and its employees also invested $400 million to withstand the pressure, effectively stopping the bleeding. Another giant, Blue Owl, is more direct: it no longer installs and cancels the quarterly redemption option of a certain fund, and starts selling assets to cash out and arrange for exit. Did you find out where the problem lies? The truly terrifying thing is not that any one company is in trouble, but that the entire $2 trillion private equity lending industry is facing the same soul questioning: Liquidity mismatch. The underlying assets are long-term loans that cannot be sold, but those who buy funds are thinking of withdrawing and running away on a quarterly basis. This is like using your brother's money to invest in a ten-year infrastructure project, and your brother asking you for money to buy a Porsche next month. Can this not be stuck? Recently, the AI wave has been too strong, catching borrowers of traditional software/technology companies off guard. Now, the market is extremely sensitive to "valuation" and "liquidity". Is the sharp decline of Bitcoin due to the passive withdrawal of funds caused by institutional backyards catching fire? At present, it appears that emotional transmission is greater than actual smashing of the market, But we also need to prevent the spread of first-hand liquidity crisis. Do you think this wave of private equity lending will spread to the cryptocurrency industry?