JPMorgan plans to launch a new private credit fund, allowing investors to redeem 7.5% quarterly.

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According to reports, JPMorgan Chase is preparing a new fund that invests in private credit. The fund will allow investors to redeem 7.5% of their shares each quarter and may also provide a monthly redemption mechanism. Currently, this $1.8 trillion market is facing unprecedented liquidity stress. As this initiative is rolled out, many large private credit managers are setting the quarterly redemption cap at 5%, locking up tens of billions of dollars of funds that would otherwise have flowed out of the fund. While interval funds are typically designed to allow quarterly redemptions of 5% to 25%, a commitment to a 7.5% redemption rate is relatively rare, and the prospect of offering monthly liquidity is even more uncommon.

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