Investment firm KKR & Co. has imposed restrictions on investor withdrawals from one of its asset-based funds after receiving redemption requests totaling 7.2% of the fund's assets.

The private equity giant's decision to limit redemptions reflects broader pressures facing alternative investment funds amid challenging market conditions. Such measures are typically implemented when withdrawal requests exceed predetermined thresholds designed to protect remaining investors.

Separately, asset manager TCW Group has written down the equity value of Red Lobster by 98% in its private credit fund. The dramatic markdown reflects the restaurant chain's deteriorating financial position and reduced prospects for recovery.

Both developments highlight ongoing stress in private markets, where firms are grappling with portfolio company valuations and investor demand for liquidity. Asset-based lending and private credit strategies have faced particular scrutiny as economic conditions have tightened.

Redemption restrictions, known as gates, allow fund managers to control the pace of withdrawals to avoid forced asset sales that could harm portfolio values. The mechanisms are standard features in many alternative investment vehicles but are activated relatively infrequently.