Key Takeaways
- • Blue Owl Credit Income Corp. estimated third-quarter redemption requests at 16.8% of shares, or $3.1 billion, according to a Wall Street Journal report, well above the typical 5% quarterly redemption cap.
- • Redemption requests fell for a second consecutive quarter, down from 18.8% of shares in the second quarter and 21.9% in the first quarter.
- • Two Blue Owl private credit funds together face redemption requests totaling $4.2 billion, per the Journal's reporting.
- • CNBC reports Blue Owl is capping private credit fund redemptions at 5% after steep request levels, indicating the gating mechanism is being applied.
Summary
Redemption requests for two of Blue Owl Capital's private credit funds remained well above the typical 5% cap in the third quarter, according to the Wall Street Journal, even as requests on one of the funds declined for a second consecutive quarter. Blue Owl Credit Income Corp. said it saw estimated third-quarter redemption requests representing 16.8% of shares outstanding, or $3.1 billion. That compares with 18.8% in the second quarter and 21.9% in the first quarter of the year.
The two funds together are seeking to pull $4.2 billion, the Journal reported. The scale of requests relative to the standard 5% quarterly limit highlights continued investor demand to exit semi-liquid private credit vehicles, a segment that has drawn scrutiny from allocators regarding liquidity terms.
CNBC reported that Blue Owl is capping redemptions in its private credit funds at 5% following the steep request levels, meaning investors seeking to withdraw more than that threshold will receive only partial fulfillment. Reuters separately reported that redemption requests at an Apollo private credit fund also eased in the third quarter, suggesting a broader moderation in withdrawal pressure across large private credit managers, though the available reporting on that fund was limited.
Blue Owl's flagship private credit fund saw redemption requests fall again in the third quarter, per BigGo Finance and Finimize coverage, consistent with the Journal's figures. Source material available for this story did not include detailed fund-level AUM or performance data.
The two funds together are seeking to pull $4.2 billion, the Journal reported. The scale of requests relative to the standard 5% quarterly limit highlights continued investor demand to exit semi-liquid private credit vehicles, a segment that has drawn scrutiny from allocators regarding liquidity terms.
CNBC reported that Blue Owl is capping redemptions in its private credit funds at 5% following the steep request levels, meaning investors seeking to withdraw more than that threshold will receive only partial fulfillment. Reuters separately reported that redemption requests at an Apollo private credit fund also eased in the third quarter, suggesting a broader moderation in withdrawal pressure across large private credit managers, though the available reporting on that fund was limited.
Blue Owl's flagship private credit fund saw redemption requests fall again in the third quarter, per BigGo Finance and Finimize coverage, consistent with the Journal's figures. Source material available for this story did not include detailed fund-level AUM or performance data.
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