Hedge funds are increasingly looking to shut the exits to investors trying to pull out money due to worries about losses, tightening bank credit lines and illiquid investments, industry figures say. A growing number of funds in the $1.9 trillion sector are using what are called gates - which can typically limit investor exits to between 10 and 25 per cent of assets per quarter. They can also suspend redemptions entirely. A report by Reuters said a number of hedge fund industry figures were seeing partial or complete suspension of redemptions. Prime brokers are also increasingly concerned about hedge funds, particularly in the credit area, that may be leveraged, have suffered large losses or are holding illiquid investments. Last week London-based hedge fund firm Peloton Partners told investors it was liquidating its $2 billion ABS Fund after some 14 lender banks pulled back on credit. In a letter to investors it blamed its lenders for severe markdowns in the value of its assets. Carlyle Capital Corporation, an affiliate of private equity firm Carlyle, received margin calls totalling more than $37 million from seven financing parties. It was unable to meet the demands for extra collateral to cover its market positions for four of them.