Blue Owl is limiting withdrawals from two of its funds after receiving a historic level of redemption requests for the first quarter. The decision follows investor concerns, particularly regarding the firm’s technology-focused fund amid fears of AI-related disruptions. Blue Owl is a private credit firm founded in 2021 that focuses on direct lending and other credit solutions. It manages assets for institutions and individual investors.
Investors requested to withdraw $5.4 billion in shares across the two funds during the first quarter. Specifically, 40.7% of shares were requested for withdrawal from the $6.2 billion Blue Owl Technology Income Corp (OTIC) fund, and 21.9% from the $36 billion Blue Owl Credit Income Corp (OCIC) fund. These percentages represent some of the highest quarterly redemption requests the industry has witnessed, according to sources familiar with the matter.
In response, Blue Owl stated it would only fulfil 5% of the withdrawal requests, citing a “meaningful disconnect” between public sentiment towards private credit funds and the actual performance of its portfolio. The firm said the downturn in software is creating opportunities to add to its portfolio. Last quarter, Blue Owl opted to allow holders of OTIC to redeem 15.4% of their shares.
The news sent Blue Owl’s shares to a new all-time low in mid-day trading, continuing a months-long decline that has seen nearly half of its market value erased since the start of 2026. Other asset managers, including Ares, Apollo Global, Blackstone, and Carlyle, also experienced declines. Industry experts caution retail investors to carefully consider the illiquidity of private credit before investing, noting that it is more suitable for professional investors.
