Singapore’s wealthy reassess private credit exposure after US funds trigger redemption curbs

[SINGAPORE] Accredited investors in Singapore are reassessing their exposure to evergreen private credit funds after a wave of redemption requests at major US managers triggered “gating” mechanisms, limiting withdrawals.

“Some investors, especially those less experienced, might view liquidity provisions as guaranteed rights, overlooking redemption limits such as gating,” said Paul Pak, Asia-Pacific asset and wealth management leader, PwC Singapore.

Gating allows fund managers to cap the amount that investors can withdraw during periods of heavy redemptions to preserve the fund.