Goldman Sachs’ $18.2 billion private credit fund reported on September 29, 2026, that investor withdrawal requests slowed during its third-quarter tender offer, signaling an easing of redemption pressure across the broader direct lending industry as initial market turbulence subsides.
Tender Offer Redemptions Ease for Goldman Sachs Fund
Investors sought to pull just 2% of shares in the latest GS Credit fund tender offer, according to data released on September 29, 2026. This marks a decrease from the 3.2% redemption rate recorded in the prior quarter. Reuters reported that the fund’s repurchase requests have stayed below its customary 5% limit since inception.
Most investors in the vehicle come through Goldman’s private wealth channels. These participants have long-term horizons in the private credit space and maintain a high tolerance for illiquidity, according to prior Reuters reporting. The fund generated roughly $400 million in gross inflows during the quarter, while its Class I shares delivered a roughly 9.4% total return from inception through August 31, 2026.
Broader Private Credit Industry Faces Elevated Withdrawals
While the Goldman vehicle saw lower withdrawal pressure, rival non-traded private credit funds have wrestled with elevated redemption requests throughout 2026. According to industry figures unveiled for the third quarter, withdrawal requests at the largest competing funds ranged from 10% to over 16% of shares. Additional data from Blue Owl funds is expected in the coming days.
Elevated redemption pressure across competitor portfolios stemmed from market worries over lending standards. Specifically, lenders faced questions regarding whether software companies that borrowed heavily from direct lending funds would survive artificial intelligence disruption. Asset managers have spent recent months clearing backlogs of withdrawal requests, though pressure has begun to show signs of easing as investor sentiment rebounds.
Shift in Software Credit Sentiment
Market sentiment regarding software-related loans has shifted meaningfully following earlier volatility in 2026. “The concerns around software-related credit quality that dominated headlines earlier in 2026 have begun to moderate,” GS Credit stated on September 29, 2026. The fund noted that the first quarter’s “SaaSpocalypse” narrative alongside second-quarter uncertainty around enterprise software spending had driven aggressive spread widening, but conditions stabilized by the third quarter.
Questions About Private Credit Redemptions
What percentage of shares did investors seek to pull from the GS Credit fund?
Investors sought to pull 2% of shares in the third-quarter tender offer, down from 3.2% in the previous quarter.
How do withdrawal requests at GS Credit compare to rival non-traded funds?
While GS Credit redemption requests stayed below its 5% limit at 2%, withdrawal requests at competing non-traded private credit funds ranged from 10% to over 16% of shares for the third quarter.
What drove elevated redemption pressure across rival funds earlier in the year?
Rival funds faced high redemption requests throughout 2026 due to concerns over lending standards and whether heavily indebted software companies would survive AI disruption.
What were the gross inflows for the Goldman Sachs private credit fund during the quarter?
The GS Credit fund generated roughly $400 million of gross inflows during the third quarter of 2026.
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