JPMorgan Tightens Private Credit Lending

JPMorgan Chase is reportedly tightening its lending criteria for private credit, while a $33 billion fund managed by Cliffwater has experienced significant redemption requests, signaling increased pressure on the private credit industry as of March 11, 2026. JPMorgan has reportedly marked down the value of loans within its private credit portfolios, a move that is expected to curtail further lending into the sector, according to sources familiar with the matter cited by the Financial Times.

JPMorgan declined to comment on the report.

Concurrently, Cliffwater's flagship private credit fund, which holds $33 billion in assets, is facing redemption requests exceeding its quarterly allowance of 5% of shares, with an additional 2% that the fund manager can buy back, as reported by Bloomberg. This follows a trend of heavy outflows from numerous private credit funds, driven by investor concerns regarding exposure to middle-market software companies that received substantial lending during a 2021 deal surge.

The challenges in private capital funds have impacted the stock performance of their managers. Blue Owl Capital shares have declined 37% year-to-date, and Ares Management shares have fallen 33% during the same period. Other firms, including Blackstone and BlackRock, have previously implemented measures such as using employee capital or capping withdrawals to manage redemption demands from their private capital funds.