Key Takeaways
- • Blue Owl Capital limited redemptions at two of its private credit BDCs to 5% after withdrawal requests surged, with fears around artificial intelligence cited as a driver.
- • Blue Owl Technology Income Corp., a roughly $5 billion fund described as the largest of its kind focused mainly on technology lending, saw shareholders seek to pull 39% of shares in the third quarter.
- • The 39% request level was a slight increase from the 38.1% requested previously, and it sits well above industry peers.
- • The second fund capped at 5% faced a 17% withdrawal request, per the headline; the primary source provides limited detail on it.
Summary
Blue Owl Capital Inc. again limited redemptions from two of its private credit funds at 5%, according to Bloomberg, as fears around artificial intelligence kept withdrawal requests at its flagship technology fund well above industry peers. The repeated cap signals continued investor pressure on the firm's business development company vehicles.
The flagship vehicle, Blue Owl Technology Income Corp., is roughly $5 billion in size and is the largest fund of its kind, mainly focused on technology lending. Shareholders sought to pull 39% of shares in the third quarter, a slight increase from the 38.1% requested previously, according to Bloomberg.
The headline figures indicate a 17% withdrawal request at the second fund, which was also capped at 5%. The primary source offers limited detail on that vehicle's size or strategy, so further specifics should be verified against additional reporting.
For allocators, the key question is whether elevated redemption requests persist into subsequent quarters and whether gating becomes a broader feature of the BDC and semi-liquid private credit segment. The 5% limits mean investors seeking full exits will receive only a fraction of requested capital in the current window.
The flagship vehicle, Blue Owl Technology Income Corp., is roughly $5 billion in size and is the largest fund of its kind, mainly focused on technology lending. Shareholders sought to pull 39% of shares in the third quarter, a slight increase from the 38.1% requested previously, according to Bloomberg.
The headline figures indicate a 17% withdrawal request at the second fund, which was also capped at 5%. The primary source offers limited detail on that vehicle's size or strategy, so further specifics should be verified against additional reporting.
For allocators, the key question is whether elevated redemption requests persist into subsequent quarters and whether gating becomes a broader feature of the BDC and semi-liquid private credit segment. The 5% limits mean investors seeking full exits will receive only a fraction of requested capital in the current window.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.