Private debt manager Next Edge halts redemptions on flagship credit fund, will wind down portfolio

Private debt manager Next Edge Capital is gating its flagship credit fund after a surge in redemption requests, meaning clients are unable to get their money out and the portfolio will be wound down over the next two years.

With so much uncertainty in the sector, a large number of Next Edge’s investors tried to cash out, and the Private Debt Fund dealt with redemption requests worth $145-million in 2023 – close to half of the fund’s $298-million in total assets under management – according to an investor memo sent last week.

“A redemption amount of this magnitude was never anticipated under most operating environments, especially considering the long-standing, and continued positive performance of the fund.” In its own memo to advisers, Next Edge explained that it contemplated different outcomes but felt the current volume of redemption requests couldn’t be overcome.

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