🚨Investors are fleeing private credit at a RECORD pace: Morgan Stanley's North Haven Private Income Fund, which manages ~$7 billion in assets, reported on Tuesday that it received redemption requests equivalent to 11.6% of its net asset value in Q2, up from 10.9% in Q1, marking the 2nd consecutive quarter of gating. More than half of Q2 requests came from investors who failed to exit in full in the prior quarter, showing that unmet redemptions are rolling forward and compounding over time. Apollo's flagship retail private credit fund, Apollo Debt Solutions, saw an even larger surge, with withdrawal requests reaching ~17% of net asset value in Q2, up from 11% in Q1. With ~$2.4 billion in withdrawal requests during the quarter, Apollo met less than 30% of redemptions, capping payouts at the standard 5% quarterly limit. This comes as AI disruption risk in software is raising questions around private credit, while higher rates and stronger public market returns make illiquid funds less attractive. The question is no longer if private credit faces a crisis, but how deep it goes.