Stone Ridge Asset Management’s LENDX fund is facing a surge in investor withdrawals. The $2.4 billion fund holds consumer and small-business loans from fintech firms including Affirm and Block.
Management fulfilled only 11% of cash-out requests during the latest redemption window. This restriction signals broadening stress in the private credit market beyond the corporate software sector.
The news prompted a decline in stock prices for both Block and Affirm. The situation highlights liquidity risks in funds that hold illiquid loans while offering periodic redemption windows to investors.