Blue Owl Private Credit Funds Limit Redemptions Amid Surge

Blue Owl Capital limited redemptions to the industry-standard 5% after two of its private-credit funds faced redemption requests far exceeding their caps in the third quarter. The surge reflects growing investor concerns regarding software exposure and general credit health.

Blue Owl Technology Income Corp., a tech-focused fund, saw the most significant pressure with requests totaling $1.1 billion, representing 39% of its shares. Blue Owl Credit Income Corp. reported estimated requests of $3.1 billion, or 16.8% of its shares.

This trend extends across the private-credit industry. Blackstone reported redemption requests for approximately 10% of its flagship fund's shares, totaling $4.3 billion, while Cliffwater's largest fund saw requests for 16%. Both firms also limited payouts to 5%.