Investment management company Blue Owl has experienced a dramatic decline in new money flowing into its largest retail credit fund, with contributions plummeting by 95% compared to the same period last year, according to recent regulatory documents.
The Blue Owl Credit Income fund, known as OCIC, received only $26.4 million in new subscription payments on May 1, a stark contrast to the $480 million it collected during the same timeframe in the previous year. The fund’s total portfolio is currently valued at approximately $34 billion.
This significant downturn reflects growing unease among affluent investors, who have been withdrawing funds from private credit investments in recent months. Their concerns center on deteriorating lending standards and fears that artificial intelligence technology could severely impact the software industry, where many of these funds have substantial investments.
The OCIC operates as a business development company, which functions by raising equity capital and combining it with borrowed funds to provide financing primarily to medium-sized businesses.
