Key Takeaways
- • Blue Owl Capital Inc. capped redemptions at two of its private credit business development companies (BDCs) at 5%, limiting withdrawals after investors sought to exit at elevated rates.
- • Investors in the roughly $5 billion Blue Owl Technology Income Corp. requested to pull 39% of shares in the third quarter, up slightly from the 38.1% requested previously, according to Bloomberg.
- • Redemption requests at the flagship technology fund remained well above industry peers, with fears around artificial intelligence cited as the driver.
- • The second BDC capped at 5% received withdrawal requests of 17%, per the headline reporting.
Summary
Blue Owl Capital Inc. again limited redemptions from two of its private credit funds at 5%, according to Bloomberg. The move comes as fears around artificial intelligence have kept withdrawal requests at its flagship technology fund well above those seen across industry peers.
The largest of the affected vehicles, Blue Owl Technology Income Corp., manages roughly $5 billion and is described as the largest fund of its kind, focused mainly on technology lending. Shareholders sought to pull 39% of shares in the third quarter, a slight increase from the 38.1% requested in the prior period. Because redemption requests far exceeded the 5% cap, investors will receive only a fraction of what they asked to withdraw.
A second Blue Owl BDC also received withdrawal requests of 17%, and was similarly capped at 5%. The repeated use of redemption limits signals sustained investor pressure on semi-liquid private credit vehicles, a dynamic that allocators and managers in the sector will be watching closely as liquidity demands persist.
The largest of the affected vehicles, Blue Owl Technology Income Corp., manages roughly $5 billion and is described as the largest fund of its kind, focused mainly on technology lending. Shareholders sought to pull 39% of shares in the third quarter, a slight increase from the 38.1% requested in the prior period. Because redemption requests far exceeded the 5% cap, investors will receive only a fraction of what they asked to withdraw.
A second Blue Owl BDC also received withdrawal requests of 17%, and was similarly capped at 5%. The repeated use of redemption limits signals sustained investor pressure on semi-liquid private credit vehicles, a dynamic that allocators and managers in the sector will be watching closely as liquidity demands persist.
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