Following a record level of redemption requests at the close of the first quarter, Blue Owl Capital Inc. told its investors it is limiting withdrawals from two of its funds.
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The New York City-based alternative asset manager limited withdrawals to 5% on Thursday after investors sought to cash out of more than $5B in shares from two of its largest funds, The Wall Street Journal reported.
A Blue Owl Capital representative pointed to the shareholder letters when reached for comment.
“Tender activity was elevated across the non-traded BDC industry in the first quarter of 2026, reflecting a period of heightened negative sentiment toward the asset class that has intensified as peers have reported tender results,” said Craig W. Packer, head of credit and co-president of Blue Owl Capital, and Logan Nicholson, diversified lending manager and president of Blue Owl Credit Income Corp., in a letter to investors.
Investors asked to pull 22% out of Blue Owl Capital’s $36B private credit Blue Owl Credit Income Corp fund and 41% out of the technology-focused Blue Owl Technology Income Corp fund.
No other major private credit manager has been asked to pay back that amount, Bloomberg reported. Blue Owl stock hit an all-time low of $7.95 on Thursday following the news.
The company, which has over $80B in assets under management and owns more than 6,000 properties, told investors it would only fulfill 5% of requests, effectively trapping billions.
The move comes after Blue Owl announced it would permanently halt redemptions for Blue Owl Capital Corp II, a private credit fund for retail investors, Seeking Alpha reported.
Investors have been pushed to reassess risk due to concerns around disruption to software-related companies as a result of artificial intelligence — a $2T private credit market.
And Blue Owl has been facing pressure for its latest AI investments after reportedly struggling to obtain financing for a CoreWeave-tenanted data center in Pennsylvania, which the company denied.
But Blue Owl isn’t alone in facing the widespread pressure to be on the right side of the disruption.
There’s been an uptick in redemption requests from a number of industry giants including Apollo Global Management, Blackstone, BlackRock and Cliffwater, which saw requests of more than 5% of shares outstanding, the WSJ reported.
In total, investors were able to redeem only half of the $14B they requested to withdraw in the first quarter of 2026, the WSJ reported, citing investment bank Robert A. Stanger & Co.
