Barings has limited the share buyback of one of its direct lending funds to 5% after investors submitted requests to redeem 11.3% of shares in the first quarter. This information is detailed in the published regulatory documentation.

The buyback restriction is linked to a recent increase in redemption requests from direct lending funds. The surge in requests has been driven by retail investors’ concerns over transparency, asset valuation, and potential risks associated with the use of artificial intelligence.

Private funds such as Barings Private Credit offer investors the opportunity to redeem funds quarterly through tender offers, which are typically capped at 5% of shares.

According to the documentation, Barings agreed to repurchase approximately 44.3% of the shares submitted for buyback in the current offer.

The fund’s liquidity structure is designed to protect the long-term interests of all shareholders. This approach aims to balance short-term liquidity needs with effective capital management for both exiting and remaining investors.