Private markets redemption dynamics this quarter stand in contrast to the acute pressure seen in credit BDCs — Partners Group and Franklin Lexington both accommodated 100% of redemption requests with capacity to spare, while the more telling signals come from the real estate and credit sides: KKR Real Estate Select Trust's incentive fee waiver through mid-2027, coming directly after a 74%-fulfilled oversubscribed tender, suggests a possible move to ease investor dissatisfaction. Meanwhile HPS's $600 million notes issuance — almost precisely offsetting its $611 million in Q1 redemptions — illustrates how the largest credit platforms are turning to institutional capital markets to replenish liquidity sleeves, something we will watch for if redemption trends persist into Q2.

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Weekly Liquidity Roundup

Partners Group Private Equity Fund Fulfills 100% of Redemption Requests Partners Group Private Equity Fund completed their 1Q26 tender offer that was 65.6% subscribed, paying out $527.4 million. Notably, Partners Group used a two-tier payment approach, with the 632 investors who tendered only a portion of their interests receiving 100% of NAV in cash. The other 1,599 investors who tendered their entire interest received an initial payment of at least 95% of NAV, with the remaining 5% held back as a "Post-Audit Payment" to be paid after the next annual audit confirms final NAV.

Franklin Lexington Private Markets Fund Fulfills 100% of Redemption Requests Franklin Lexington Private Markets Fund’s 1Q26 tender offer was 41% subscribed, with all tendered shares accepted in full and no pro-rata cuts needed. The fund paid out approximately $37.5 million — well below the $91.3 million cap (5% of net assets as of December 31, 2025).

KKR Real Estate Select Trust Inc. Waives Incentive Fee Through 2027 KKR Real Estate Select Trust Inc. has agreed, for the period beginning May 20, 2026, through June 30, 2027, to waive the Incentive Fee payable to the Adviser. The fee cut comes on the heels of an oversubscribed tender offer in 1Q26 when the fund fulfilled only 74% of redemption requests.

HPS Corporate Lending Fund Raises $600M HPS Corporate Lending Fund issued $600 million in 5-year unsecured notes at 6.300%, maturing August 19, 2031, and intends to use the proceeds for new investments, to pay down existing borrowings, and for general corporate purposes. HPS simultaneously entered into an interest rate swap converting the fixed 6.300% coupon to floating (3-month SOFR plus 2.394%) — aligning the liability cost structure with its predominantly floating rate loan portfolio and reducing net interest rate risk. This capital raise comes on the heels of HPS Corporate Lending Fund fulfilling only 54% of 1Q26 redemption requests.

Open Redemption Windows:

  • CAZ Strategic Opportunities Fund
  • Ares Strategic Income Fund
  • Ares Core Infrastructure Fund
  • Cantor Fitzgerald Infrastructure
  • FS Credit Income Fund
  • Invesco Dynamic Credit

Recent Redemption Results:

Partners Group Private Equity Fund Tendered: 65.6% of cap Repurchased: 100% of tendered — $527.4M paid out in full

Franklin Lexington Private Markets Fund Tendered: 41% of cap Repurchased: 100% of tendered — $37.5M paid out in full

Ares Private Markets Fund Tendered: 63.8% of cap Repurchased: 100% of tendered — $128.2M paid out in full

Liquidity Roundup is a 5-minute briefing created by Sekond and designed to keep you current on liquidity events across evergreen funds. For full details on deadlines, caps, and more, sign into your Sekond account.