Private investors are voting with their wallets, and Wall Street's biggest asset managers are feeling the sting. In a dramatic reversal of fortune, investors yanked $7 billion from major private credit funds in the final quarter of 2025, a 200% surge from previous periods. This exodus from non-traded business development companies (BDCs) and interval funds—vehicles that once promised steady returns and portfolio diversification—signals a fundamental shift in investor confidence within the $1.7 trillion private credit market.
