Key Takeaways
- • Blue Owl Capital (OWL) told investors on April 2, 2026 it is limiting withdrawals from two non-traded business development company funds after a historic level of first-quarter redemption requests, according to Reuters.
- • Investors sought to withdraw 40.7% of shares in the $6.2 billion Blue Owl Technology Income Corp (OTIC) and 21.9% of shares in the $36 billion Blue Owl Credit Income Corp (OCIC), per preliminary company data; Blue Owl plans to fill only 5% of requests.
- • Reuters calculated that investors asked to redeem $5.4 billion across the two funds during the first quarter; the OTIC percentage ranks among the highest quarterly redemption requests the industry has seen, per a person familiar with the matter.
- • Blue Owl's shares hit a new all-time low intraday and have shed nearly half their market value since the start of 2026, with peers Ares, Apollo, Blackstone and Carlyle also declining.
- • The move follows similar redemption limits at KKR, Apollo and BlackRock, with AI-driven concerns about software credit exposure cited as the main driver of investor exits.
Summary
Blue Owl Capital told investors on Thursday, April 2, 2026, that it is limiting withdrawals from two of its non-traded business development company (BDC) funds after a historic level of redemption requests for the first quarter, according to Reuters. AI-related worries drove an investor exodus from the technology-focused fund, Blue Owl Technology Income Corp (OTIC), where requests equaled 40.7% of shares outstanding. The $6.2 billion fund's peer, Blue Owl Credit Income Corp (OCIC), a $36 billion vehicle, received requests for 21.9% of its shares, according to preliminary data released by the company. Those percentages rank among the highest quarterly redemption requests the industry has seen, a person familiar with the matter said.
Blue Owl said it plans to fill only 5% of the requests, citing a "meaningful disconnect" between public sentiment on private credit funds and the underlying performance of its portfolio. Reuters calculated that investors sought to withdraw $5.4 billion across the two funds during the first quarter. Non-traded BDCs typically offer quarterly redemption windows capped at 5% of shares, so the firm's decision keeps it within standard industry structure while sharply limiting payouts. Last quarter, Blue Owl allowed OTIC holders to redeem 15.4% of their shares.
Private credit managers have faced strain amid market weakness, valuation concerns and lending-standard worries following several high-profile bankruptcies. Blue Owl, founded in 2021, has become a focal point for these pressures. About 8% of the firm's roughly $300 billion in assets was invested in software, the company previously said, and investors have indiscriminately sold exposures tied to the sector as AI advances threaten to disrupt industries. Blue Owl said the software downturn is creating opportunities to add to its portfolio. In a shareholder update, CEO Craig Packer said tender activity "was elevated across the non-traded BDC industry in the first quarter of 2026," reflecting heightened negative sentiment that intensified as peers reported tender results. The company said concerns about AI-related disruption to software companies "have weighed meaningfully on investor perception of software-related credit exposures."
The concentration of requests may point to institutional or wealth-management investors rather than broad retail panic: 1% of OCIC shareholders accounted for the majority of tender requests, according to Reuters. Blue Owl's shares fell to a new all-time low in mid-day trading and have lost nearly half their market value in 2026. Other private-asset managers, including Ares, Apollo Global, Blackstone and Carlyle, also declined. Blue Owl is the latest among firms including KKR, Apollo and BlackRock to limit redemptions in recent weeks. Previous Blue Owl proposals, including a plan last year to merge a public vehicle with a private version and to sell assets to fund payouts instead of quarterly redemptions, had also met market resistance. Sam Stovall, chief investment strategist at CFRA Research, said the episode illustrates how illiquid the sector is and that it is "meant for professionals."
Blue Owl said it plans to fill only 5% of the requests, citing a "meaningful disconnect" between public sentiment on private credit funds and the underlying performance of its portfolio. Reuters calculated that investors sought to withdraw $5.4 billion across the two funds during the first quarter. Non-traded BDCs typically offer quarterly redemption windows capped at 5% of shares, so the firm's decision keeps it within standard industry structure while sharply limiting payouts. Last quarter, Blue Owl allowed OTIC holders to redeem 15.4% of their shares.
Private credit managers have faced strain amid market weakness, valuation concerns and lending-standard worries following several high-profile bankruptcies. Blue Owl, founded in 2021, has become a focal point for these pressures. About 8% of the firm's roughly $300 billion in assets was invested in software, the company previously said, and investors have indiscriminately sold exposures tied to the sector as AI advances threaten to disrupt industries. Blue Owl said the software downturn is creating opportunities to add to its portfolio. In a shareholder update, CEO Craig Packer said tender activity "was elevated across the non-traded BDC industry in the first quarter of 2026," reflecting heightened negative sentiment that intensified as peers reported tender results. The company said concerns about AI-related disruption to software companies "have weighed meaningfully on investor perception of software-related credit exposures."
The concentration of requests may point to institutional or wealth-management investors rather than broad retail panic: 1% of OCIC shareholders accounted for the majority of tender requests, according to Reuters. Blue Owl's shares fell to a new all-time low in mid-day trading and have lost nearly half their market value in 2026. Other private-asset managers, including Ares, Apollo Global, Blackstone and Carlyle, also declined. Blue Owl is the latest among firms including KKR, Apollo and BlackRock to limit redemptions in recent weeks. Previous Blue Owl proposals, including a plan last year to merge a public vehicle with a private version and to sell assets to fund payouts instead of quarterly redemptions, had also met market resistance. Sam Stovall, chief investment strategist at CFRA Research, said the episode illustrates how illiquid the sector is and that it is "meant for professionals."
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