Quick answer: Most non-traded private credit funds buy back about 5% of their shares each quarter. When more investors ask to leave than that, everyone who asked gets the same fraction, and in most funds the rest is not carried forward — you have to ask again next quarter.
Rule of thumb: If requests are twice the cap, you get about half. Three times the cap, about a third.
See your own exit timeline, quarter by quarter: Jump to the calculator →
Fourth-quarter tender windows for many funds close in late November or early December — BCRED’s current tender, for example, closes December 1, 2026, using the December 31 NAV for pricing. Find your own fund’s exact deadline in its latest notice.
- Why you got part
- Resubmit or lose your place
- Your timeline
- Fees
- Taxes
- Discount offers
- Your advisor
- Before you buy again
Fund figures verified November 8, 2026. Requests change every quarter; check your fund’s filings before relying on any number here.
Three things worth keeping straight as you read the rest of this guide:
IN THE DOCUMENTS
The repurchase cap, the early repurchase deduction, how resubmission works, and the minimum-balance rule are all spelled out in your fund’s prospectus and current tender offer.
AT THE BOARD’S DISCRETION
Raising the cap, cutting it, or suspending the repurchase program entirely is a decision the fund’s board can make at any time.
UNKNOWN
How many other investors will ask to leave next quarter, where NAV goes from here, and how long this particular cycle lasts.
Exit Timeline Calculator
Enter your own numbers to see a rough quarter-by-quarter path out, based on your fund’s cap and the demand you expect.
Why You Got Back Only Part of Your Money
Your fund only agreed to buy back a slice of its shares this quarter, and more investors asked to leave than that slice could cover.
Non-traded private credit funds — non-traded business development companies (BDCs) and private credit interval funds — don’t trade on an exchange. Instead, they run a quarterly tender offer: the board sets a maximum percentage of shares it will repurchase, commonly around 5%, and investors who want out submit a request by a deadline.
When total requests exceed that cap, the fund prorates: every tendering investor gets the same fraction of what they asked for, not a first-come, first-served fill. If you asked for $20,000 and the fund can only fill half of all requests, you get back $10,000 and the rest is reconsidered next quarter.
Unfilled Requests Usually Don’t Roll Over
The portion of your request that wasn’t accepted stays in your account as shares — it isn’t automatically carried into the next tender offer.
That’s why the headline “requests” percentage each quarter often looks larger than you’d expect: fund letters have repeatedly noted that a large share of a given quarter’s requests are investors re-submitting amounts that weren’t filled the quarter before. Generally speaking, you need to watch for the next repurchase offer notice and tender again for whatever you still want out — check your own fund’s terms, since some non-traded REIT programs in the past worked a little differently.
What’s Happening Across the Industry in 2026
Several of the largest non-traded private credit funds have been capping repurchases at 5% for multiple quarters in a row in 2026, while a couple of others have eased back below the cap.
BCRED (Blackstone Private Credit Fund)
Q3 2026 requests: about 10% of shares (~$4.3 billion). Cap: 5%, held for a third straight quarter. Blackstone’s board temporarily raised the cap to 7% in Q1 2026, with Blackstone and its employees contributing $400 million, to fill that quarter’s requests in full.
Source: Blackstone investor letter, September 3, 2026.
Apollo Debt Solutions BDC
Q2 2026 requests: about 16.8% of shares (~$2.4 billion). Q3 2026 requests: about 14.7%. Cap: 5% both quarters. Apollo estimates that investors who sought liquidity during 2026 will have received roughly 75% of their requested capital after Q3 payments.
Source: SEC Form 8-K, September 2026.
Cliffwater Corporate Lending Fund
Q2 2026 requests: about 17% of shares. Q3 2026 requests: about 16%. Cap: 5% (the fund used a 7% cap in Q1 2026 before moving to the standard 5%).
Source: PitchBook, September 9, 2026.
Fitch Ratings industry snapshot
Q3 2026 requests averaged 9.8% of shares across 13 of the 15 perpetually non-traded BDCs Fitch tracks, down from a 10.3% average in Q2. Requests were below 5% (no proration needed) at six of those BDCs.
Source: Fitch Ratings, October 13, 2026.
Blue Owl Capital Corp II (OBDC II)
Stopped its regular quarterly tender in February 2026 after selling roughly $600 million of loans (about a third of its portfolio). The fund is instead returning capital through periodic, asset-sale-funded distributions to all shareholders rather than resuming the standard 5%-a-quarter tender.
Source: company statement and press reports, February 2026.
| Fund | Quarter | Requests (% of shares) | Offer | Prorated? | Source and date |
|---|---|---|---|---|---|
| BCRED (Blackstone Private Credit Fund) | Q3 2026 | ~10% (~$4.3B) | 5% | Yes | Blackstone investor letter, Sept. 3, 2026 |
| Apollo Debt Solutions BDC | Q3 2026 | ~14.7% (Q2: ~16.8%) | 5% | Yes | SEC Form 8-K, Sept. 2026 |
| Cliffwater Corporate Lending Fund | Q3 2026 | ~16% (Q2: ~17%) | 5% | Yes | PitchBook, Sept. 9, 2026 |
| Fitch industry average (13 of 15 perpetual non-traded BDCs) | Q3 2026 | avg. 9.8%; 6 funds below 5% | varies by fund | varies | Fitch Ratings, Oct. 13, 2026 |
| Blue Owl Capital Corp II (OBDC II) | Since Feb. 2026 | Regular quarterly tender stopped | N/A | N/A | Company statement, Feb. 2026 |
Whether this counts as a crisis or as the structure working as designed depends on your vantage point. The funds involved note that loan portfolios remain largely current and that the caps exist precisely so a wave of redemption requests doesn’t force the sale of performing loans at a discount. Investors mid-queue reasonably experience it as a long wait regardless of how the fund frames it.
This isn’t the first time a non-traded structure has hit this wall: non-traded REITs went through a similar multi-quarter redemption-cap cycle in 2022–23. See our guide to non-traded REITs for that precedent.
The Costs of Getting Out
Beyond the wait, a repurchase can come with a deduction, a possible full buyout, and a payment schedule that isn’t always same-day cash.
Early repurchase deduction. Many funds deduct a percentage — commonly 2% of NAV — from proceeds on shares held less than a year. This is a fund mechanism, not a tax, and it’s frequently waived for death, divorce, or a qualified disability, and typically doesn’t apply to shares you received through dividend reinvestment (DRIP). Verify the exact terms in your fund’s current offer document.
Minimum-balance buyout. If a partial repurchase would leave your account below the fund’s stated minimum, many funds will instead repurchase all of your shares.
Payment mechanics. Some funds pay part of the proceeds first with a non-interest-bearing, non-transferable promissory note, with cash following later. The valuation date used to set your price — usually the last day of the quarter — can be well before the date you’re actually paid.
How a Repurchase Is Taxed
A fund repurchase is treated, for tax purposes, as either a sale or a dividend-like distribution — and which one applies can change your tax bill substantially.
Fund offer documents generally describe this through §302 of the tax code: if the repurchase reduces your ownership enough — for example, if you tender your entire position or meet certain numerical thresholds — it’s typically treated as a sale, meaning capital gain or loss. If your ownership doesn’t drop by enough, it can instead be treated as a §301 distribution, taxed as a dividend to the extent of the fund’s earnings and profits, and not eligible for qualified-dividend rates.
Wash sales. If your repurchase produces a loss, the wash-sale rule can disallow that loss if you acquire shares — including through automatic dividend reinvestment — within 30 days. For more on how this works generally, see our wash sale rule guide and our capital gains tax guide.
IRAs. A repurchase inside an IRA isn’t taxed at the moment it happens. What matters for tax purposes is what happens once money actually leaves the IRA — that’s a separate question from the 2% early repurchase deduction, which still applies regardless of account type.
| Item | What it is | When it applies | Where to find it |
|---|---|---|---|
| Early repurchase deduction | A deduction, commonly 2% of NAV | Shares held under one year; often waived for death, divorce, or qualified disability | Prospectus and current tender offer document |
| Minimum-balance buyout | Full repurchase instead of a partial amount | When a partial fill would leave you below the fund’s minimum | The repurchase offer notice |
| Sale vs. distribution tax treatment | Capital gain/loss vs. dividend-like income | Depends on how much your ownership drops (§302) | Tender offer document and your 1099 |
| Wash-sale disallowance | A loss can be disallowed | If you reacquire shares, including via DRIP, within 30 days | IRS rules; your tax preparer |
| IRA distribution rules | No tax at the moment of repurchase | Only when shares are held in an IRA | Your IRA custodian; a CPA |
Discount Offers and Secondary Sales
If a third party has offered to buy your shares outside the fund’s own tender process, that offer deserves extra scrutiny before you respond to it.
A “mini-tender” offer is one for less than 5% of a company’s or fund’s outstanding shares, and offers at that size fall outside most of the SEC’s standard tender-offer protections. Bidders in mini-tenders may price below NAV, may deduct fees from the payout, and — unlike most registered tender offers — investors generally cannot withdraw once they’ve tendered. Third-party offers for private credit fund shares have reportedly been priced at 15–30% discounts to NAV, though terms vary by offer, so verify against the specific offer in front of you.
The SEC publishes investor guidance on recognizing and evaluating mini-tenders; see the SEC’s Mini-Tender Offers: Tips for Investors. If something looks off, the SEC’s Office of Investor Education and Advocacy takes complaints.
This guide won’t tell you whether to take a specific offer. What it can tell you: compare the price to the fund’s most recently published NAV, ask directly whether any fees are deducted from the stated price, and read the offer document in full before you tender anything.
Was This Investment Right for You? Your Options
A partial repurchase that follows the fund’s own published terms is not, by itself, evidence of broker misconduct — the real question is whether the original recommendation and disclosure fit you.
Broker-dealers recommending securities to retail customers are held to the SEC’s Regulation Best Interest (Reg BI), effective since June 30, 2020, which requires a recommendation to be in the customer’s best interest rather than the firm’s. Worth examining: did the recommendation account for your need for liquidity, your income needs in retirement, and how concentrated this one position made your portfolio?
You can check a broker’s background through FINRA’s BrokerCheck, and you can file a complaint through FINRA’s Investor Complaint Center. Customer disputes against a firm typically go to FINRA arbitration rather than court, and under FINRA Rule 12206, a claim generally isn’t eligible for arbitration once six years have passed from the event that gave rise to it — so timing matters if you’re considering this route. For general background, see our guides on working with a securities fraud attorney and on the difference between a fiduciary and a broker.
Your Options Side by Side
| Option | How fast | Price vs. NAV | Can you reverse it? | Costs | What to check |
|---|---|---|---|---|---|
| Resubmit and wait | Next quarterly window (~90 days) | Full NAV, prorated | No — unfilled portion returns to your account as shares | Early repurchase deduction if inside year one | Next tender deadline; proximity to the fund’s minimum balance |
| Mini-tender or secondary offer | Days to a few weeks | Typically below, sometimes well below NAV | Generally no — can’t withdraw once tendered | Possible dealer fees deducted from price | Who the bidder is; exact net price; payment timing |
| Hold and stop requesting | N/A — you keep the shares | Tracks NAV, which can move either direction | N/A | None from this choice alone | Whether distribution or NAV trends change your plan |
| FINRA complaint or arbitration (recourse, not liquidity) | Months to over a year | N/A — not about current share price | Generally not once filed and decided | Possible attorney and filing fees | Whether the recommendation, not just the gate, was the issue |
Is Private Credit Safe? What the Gates Do and Don’t Tell You
A repurchase cap being enforced tells you about liquidity, not about whether the underlying loans are performing — those are two different questions.
Liquidity risk is about whether you can get your money when you want it. Credit risk is about whether the fund’s loans are getting repaid on schedule. A fund can be capping redemptions at 5% every quarter while its non-accrual rate (loans not currently paying interest) stays flat or falls, and NAV marks can move for reasons unrelated to the redemption queue. Reading a fund’s non-accrual trend and NAV history alongside its redemption data gives a fuller picture than the request percentage alone.
| How you exit | Who sets the price | Typical limit | Can price differ from NAV? |
|---|---|---|---|
| Non-traded BDC — quarterly tender offer, prorated if oversubscribed | The fund, from its own NAV calculation | ~5% of shares per quarter; board can change it | No — priced at NAV; no market price exists |
| Listed BDC — sell on an exchange any trading day | The stock market | None — any amount, any day | Yes — often trades at a discount or premium to NAV |
| Interval fund — periodic repurchase offer, by rule 5%–25% | The fund, from its own NAV | Set by the board within that range; prorated if oversubscribed | No — priced at NAV; no market price exists |
| Bond fund or ETF — sell/redeem any business day | The market (ETF) or the fund at NAV (open-end fund) | None | ETFs can trade slightly off NAV; open-end funds transact at NAV |
One more piece of context: as of early November 2026, the Department of Labor has submitted a final rule on including alternative assets — potentially including private credit funds — in 401(k) investment lineups to the White House for review, following a proposed version issued March 30, 2026 that drew roughly 45,000 public comments before its comment period closed June 1, 2026. It has not been finalized or published as of this writing. If you’re weighing a private credit allocation inside a retirement account, see our note on this in our target-date funds guide, and our broader overview in private equity investing.
SIPC coverage is a separate topic worth a one-line note here: SIPC protects against a brokerage firm’s failure, not against a fund’s shares losing value or against its own repurchase limits. See our SIPC coverage limits guide for the distinction.
Before You Buy Another Semi-Liquid Fund
Before your next tender deadline — or before you put new money into a fund like this one — work through this list.
- Find the deadline for this quarter’s tender in your fund’s notice or from your advisor, and put it on your calendar.
- Resubmit the full amount you still want out. Partial acceptance doesn’t hold your place.
- Check the 2% deduction: when did each lot pass one year? Are any of them DRIP shares?
- Check the minimum balance: could a partial tender trigger a full buyout?
- Ask how you’ll be paid: cash or a note first, and the payment date.
- Pause dividend reinvestment if you expect a loss, and ask a CPA about wash sales.
- If you get a discount offer: compare it to the latest NAV, ask about fees, and read the SEC’s mini-tender tips before tendering.
- Before buying any semi-liquid fund again: what’s the repurchase cap, what happened in past high-request quarters, what’s the early deduction, and how much of your money could you leave untouched for 5+ years?
Two more things worth checking before you commit new money: what the fund’s fee structure actually costs you over time (see our investment fees guide), and whether a more liquid place to park that cash while you think it over makes more sense for now (see where to park cash).
Frequently Asked Questions
Why did my private credit fund only pay part of my redemption?
Because more shareholders asked to get money out than the fund agreed to repurchase that quarter. Most funds cap repurchases at around 5% of shares, so when requests run higher, everyone who asked gets the same fraction of what they tendered.
What is the 5% redemption limit?
It’s the standard quarterly cap many non-traded private credit funds set on how many shares they’ll buy back at one time. A fund’s board can raise it, lower it, or suspend it, and the exact figure is in the fund’s own offer documents.
Do unfilled redemption requests roll over to the next quarter?
Generally, no. Shares that weren’t accepted stay in your account, and you typically have to submit a new request for the next tender offer. Check your specific fund’s terms, since this has varied by product.
How long will it take to get all my money out?
It depends on how many other shareholders keep asking to leave and whether that eases over time. The calculator above runs out a few scenarios based on what you enter, but it’s an estimate, not a guarantee.
Can the fund suspend redemptions completely?
Yes. A fund’s board can pause, reduce, or end its repurchase program at its discretion, as some funds have done in 2026. That possibility is disclosed in the fund’s offer documents.
Can a fund raise the limit above 5%?
Yes — some boards have temporarily raised their cap above 5% during periods of heavy demand, and a few funds use a cap above 5% as their standard. It’s entirely up to the fund’s board.
What is the early repurchase deduction?
It’s a deduction, commonly 2% of NAV, that applies if you’re repurchasing shares you’ve held less than a year. It’s a fund mechanism, not a tax, and it’s often waived for death, divorce, or a qualified disability.
Is the 2% deduction waived if the shareholder dies?
Many funds waive it in that situation, along with divorce and qualified disability, but the exact waiver terms are set by each fund. Check your fund’s current offer document or ask your advisor.
Can the fund buy out my whole account?
Yes. If a partial repurchase would leave your balance below the fund’s stated minimum, many funds will repurchase your entire remaining position instead of just the prorated amount.
When will I actually receive the cash?
Timing varies by fund: some pay entirely in cash, and some pay part of the proceeds with a non-interest-bearing promissory note before the rest arrives in cash. The valuation date used to set your price can also be earlier than your actual payment date.
Is a BDC repurchase taxed as a sale or a dividend?
It depends on how much your ownership drops as a result. Under the tax code’s §302 rules, a big enough drop is usually treated as a sale (capital gain or loss); a smaller drop can instead be treated as a dividend-like distribution.
Does the wash sale rule apply if I reinvest dividends?
It can. If a repurchase produces a loss and you’re still reinvesting dividends into new shares within 30 days, the wash-sale rule may disallow that loss for tax purposes.
What if my shares are in an IRA?
A repurchase inside an IRA isn’t taxed at that moment. What happens tax-wise depends on what you do once money actually leaves the IRA — a separate question from the 2% early repurchase deduction, which still applies.
What is a mini-tender offer?
It’s an offer to purchase less than 5% of a company’s or fund’s shares, which falls outside most of the SEC’s standard tender-offer protections. Mini-tenders sometimes price below NAV, and once you’ve tendered, you generally can’t take it back.
Should I accept an offer below NAV?
That’s your call to make, but compare the offer price to the fund’s latest published NAV, ask about any fees being deducted, and read the SEC’s investor guidance on mini-tenders before deciding.
Can I file a complaint against my advisor?
You can file a complaint with FINRA or pursue arbitration if you believe a recommendation wasn’t suitable or wasn’t disclosed properly — separate from whether the fund itself is simply running its repurchase program as designed. A securities attorney can help assess whether you have a case.
Is private credit safe?
“Safe” depends on what you’re asking: liquidity risk (can you get your money when you want it) and credit risk (will the underlying loans get repaid) are different questions, and a redemption cap being enforced doesn’t by itself tell you anything about loan quality.
Does SIPC protect me if the fund loses value?
No. SIPC protects against a brokerage firm failing, not against a fund’s shares losing value or against its repurchase limits. Those are separate risks.
This article is general information, not investment, tax, or legal advice. Fund terms differ, and a fund’s board may change its repurchase program at any time. Figures in this article were verified on November 8, 2026; read your own fund’s prospectus and current tender offer documents, and consult a qualified professional about your specific situation.
— re-verify after each quarter’s tender results are filed.
Daniel Hayes is the founder and sole researcher at AdvoraHQ. He covers U.S. personal finance, insurance, and consumer law — working directly from IRS publications, federal and state statutes, court opinions, and SEC filings rather than secondary summaries. His focus is the gap between what readers think they know and what the source documents actually say. Daniel is not a licensed attorney, CPA, or financial advisor; his articles are educational and not personalized advice. Reach him at Daniel.Hayes@advorahq.com.
