March 26 (Reuters) – JPMorgan Chase has filed with the U.S. Securities and Exchange Commission for a private credit fund that will allow investors to redeem 7.5% quarterly, as withdrawal pressures build across the industry.
According to a prospectus on Wednesday, JPMorgan Public and Private Credit Fund has also asked the market regulator for an exemption that would allow it to repurchase at least 2% of outstanding shares each month.
The fund would typically invest at least 80% of its net assets, plus any borrowings for investment purposes, in credit investments, the prospectus said.
While the fund’s policy permits repurchases of between 5% and 25% of outstanding shares every quarter, it currently “expects” to repurchase 7.5%, it said.
The filing comes as the roughly $2-trillion private credit industry faces investor unease over lending standards and outsized exposure to the software industry, which has led to a wave of redemptions and pushed some to limit withdrawals.
Earlier this week, Ares Management became the latest alternative asset manager to cap investor withdrawals at a private credit fund following a surge in redemption requests, joining the ranks of Apollo Global and BlackRock.
(Reporting by Utkarsh Shetti in Bengaluru; Editing by Shilpi Majumdar)
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