Goldman Sachs Fund Sees Slowing Investor Withdrawals

Investor withdrawal requests for Goldman Sachs' $18.2 billion GS Credit fund significantly slowed during the third quarter. The fund reported that only 2% of shares were sought for redemption, a decrease from 3.2% in the prior quarter and well below the typical 5% limit. This marks a notable easing of redemption pressure, a trend observed across the broader private credit industry.

In contrast, other major non-traded private credit funds have faced higher withdrawal requests, ranging from 10% to over 16% in their third-quarter tender offers. These rival funds have grappled with elevated redemption pressures throughout 2026, fueled by concerns over lending standards and the resilience of software companies heavily borrowed from direct lenders amidst AI disruption.

However, redemption pressure at these major funds is now showing signs of easing. Asset managers are working through backlogs of withdrawal requests, and investor sentiment appears to be rebounding from recent market turbulence. Goldman Sachs noted that concerns about software-related credit quality, which dominated headlines earlier in 2026, have begun to moderate, contributing to a more stable landscape.

GS Credit also reported approximately $400 million in gross inflows during the third quarter. Its Class I shares have delivered a notable total return of roughly 9.4% since inception as of August 31, 2026. A significant portion of the fund's investors come from Goldman's private wealth channels, who are typically long-term investors able to tolerate illiquidity.