3) This is also a drawback of the private credit fund model: The inherent concern is liquidity mismatch. These funds invest in medium- to long-term (5-7 years or longer) private loans but provide limited quarterly liquidity to retail investors, making them prone to amplifying redemption demands when sentiment deteriorates. For private credit funds like HLEND and BCRED, the redemption mechanism is a fundamental arrangement, not an emergency measure. The fund's built-in protection mechanisms prevent "structural mismatch" (investors' short-term capital vs. loan's long duration), avoiding forced asset dumping that harms remaining investors. This isn't a sudden, widespread panic like a "bank run," but rather a typical manifestation of overall liquidity pressure in the private credit industry starting to appear at the retail level (high-net-worth/accredited individual investors) (investor sentiment is affected, panic arises, and redemption demands surge). This pressure can be seen as a "coming-of-age ceremony" for the retailization of private credit. This doesn't mean the private credit sector is completely problem-free; on the contrary, it has indeed exposed many issues. I'll discuss the risks and problems in the private credit sector in the next article.