A major private credit company announced Thursday it will cap investor withdrawals from two of its retail funds following an unprecedented wave of redemption requests.
Blue Owl Capital Management received withdrawal demands totaling 40.7% of investor shares in its Blue Owl Technology Income Corp fund, along with requests for 21.9% of shares in the Blue Owl Credit Income Corp fund, according to preliminary data released in shareholder communications.
The investment firm responded by reinstating standard withdrawal limits of 5% of fund shares per quarter. These business development companies typically maintain such restrictions, though Blue Owl had relaxed the policy last quarter to accommodate redemptions of 15.4% of shares.
The withdrawal surge highlights investor concerns in the private credit sector as market conditions shift. Blue Owl’s decision to reimpose the quarterly caps will force many investors seeking to exit their positions to wait longer to access their money.
