Private Credit Stress Widens

Benzinga

Stone Ridge's LENDX fund honored only 11% of redemption requests amid a surge in investor withdrawals, reflecting growing stress in private credit markets. The $2.4B fund — which holds fintech consumer and small-business loans including BNPL and merchant financing — is required to offer at least 5% quarterly repurchases as an interval fund.

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00:00It's Benzinga bringing Wall Street to Main Street, a Stone Ridge fund holding consumer

00:04and small business loans limited investor withdrawals after receiving high redemption

00:08requests, honoring only 11% of requested amounts. According to the Wall Street Journal,

00:14the Stone Ridge Alternative Lending Risk Premium Fund, known as LENDX, invests in loans from

00:19fintech lenders, including buy now pay later loans, personal loans, and merchant financing.

00:24The fund held $2.4 billion in total assets and $1.6 billion in net assets as of November.

00:31As an interval fund, it must offer to repurchase at least 5% of shares each quarter.

00:37The latest redemption window ended March 6th. Rising redemption pressure reflects broader

00:42concerns in private credit markets. For all things money, visit Benzinga.com.

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