Blue Owl private credit funds redemptions capped at 5% after steep requests
(CNBC) Blue Owl faces increased redemption requests for its private credit funds due to market concerns around AI-related disruption, leading the firm to cap requests at 5%.
Blue Owl, an investment firm, has experienced higher-than-usual redemption requests for its OCIC and OTIC private credit funds. The OCIC fund, with $36 billion in assets, saw redemption requests of 21.9%, while the tech-focused OTIC fund had requests of 40.7% during the first quarter. Blue Owl attributed the elevated requests to market worries about AI impacting software companies. Despite the challenges, the firm remains confident in the portfolio’s underlying trends and believes there are opportunities for experienced lenders. The private credit industry, particularly business development companies heavily invested in software, has been facing concerns over default risks and AI-related uncertainties. Blue Owl’s decision to cap redemption requests at 5% is in line with many other firms in the industry.
