Goldman Sachs Private Credit Fund Sees Redemptions Ease in Q3

Goldman Sachs’ private credit fund reported a further slowdown in investor redemption requests during its third-quarter tender offer, outperforming several major rivals as withdrawal pressure across the private credit industry begins to ease.

The $18.2 billion GS Credit fund said investors requested to redeem just 2% of outstanding shares in the latest tender offer, down from 3.2% in the previous quarter. Since the fund’s inception, repurchase requests have consistently remained below its customary 5% quarterly limit.

The performance contrasts sharply with some of the largest non-traded private credit funds. Third-quarter withdrawal requests disclosed by major competitors have ranged from about 10% to more than 16% of shares. Figures from Blue Owl funds are expected in the coming days.

Private credit funds have faced elevated redemption requests throughout 2026 amid concerns over lending standards and exposure to software companies. Investors have questioned whether heavily indebted technology borrowers can withstand disruption caused by artificial intelligence.

However, redemption pressure across the industry is showing signs of moderating. Asset managers have been working through withdrawal backlogs, while investor confidence has improved following recent market turbulence.

GS Credit said concerns surrounding software-related credit quality have also eased compared with earlier in the year. The fund noted that worries surrounding the first-quarter “SaaSpocalypse” narrative and uncertainty over enterprise software spending in the second quarter had previously contributed to significant credit spread widening.

Goldman Sachs’ fund may also benefit from its investor base. A substantial portion of GS Credit investors comes through Goldman’s private wealth channels, where clients tend to have longer investment horizons and greater tolerance for the illiquidity associated with private credit.

On the fundraising side, GS Credit generated approximately $400 million in gross subscriptions during the third quarter. The fund’s Class I shares delivered a total return of roughly 9.4% from inception through August 31, 2026.

The latest figures suggest Goldman Sachs has so far experienced significantly lower redemption demand than many private credit competitors as industry conditions stabilize.