When Private Credit Funds Lock the Doors

Private credit – loans made by funds instead of banks – is suddenly showing stress. Some funds are putting up “gates,” limiting withdrawals in a way one commentator compared to *Hotel California*: you can check out, but you can’t leave. At the same time, several pieces of research warn that private credit and leveraged investors could turn the next bout of market weakness into a much bigger, cross‑asset selloff. Even if you never touch a private credit fund, this plumbing matters for how violent the next risk‑off move could be.