{"id":41218,"date":"2026-04-04T20:01:19","date_gmt":"2026-04-04T20:01:19","guid":{"rendered":"https:\/\/foreignnewstoday.com\/?p=41218"},"modified":"2026-04-04T20:01:19","modified_gmt":"2026-04-04T20:01:19","slug":"blue-owl-private-credit-funds-redemptions-capped-at-5-after-steep-requests","status":"publish","type":"post","link":"https:\/\/foreignnewstoday.com\/?p=41218","title":{"rendered":"Blue Owl private credit funds redemptions capped at 5% after steep requests"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108286611\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108286611\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000408631\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\"><a href=\"https:\/\/www.cnbc.com\/quotes\/OWL\/\">Blue Owl<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> is experiencing elevated redemption requests for two of its private credit funds, according to letters to shareholders issued Thursday.<\/p>\n<p>The firm&#8217;s flagship OCIC fund, with about $36 billion in assets under management, received redemption requests of about 21.9% of shares outstanding during the first quarter, the firm said. Blue Owl&#8217;s smaller, tech-oriented fund, OTIC, received redemption requests of 40.7% during the same period, it said. <\/p>\n<p>In both of the funds, Blue Owl opted to cap requests at 5%. Blue Owl attributed the higher-than-usual requests to &#8220;heightened market concerns around AI-related disruption to software companies.&#8221;<\/p>\n<p>&#8220;We continue to observe a meaningful disconnect between the public dialogue on private credit and the underlying trends in our portfolio,&#8221; Blue Owl said in the shareholder letters. <\/p>\n<p>The private credit industry has been <a href=\"https:\/\/www.cnbc.com\/2026\/02\/20\/blue-owl-software-lending-private-credit-concerns.html\">roiled in recent months<\/a> by concerns that it is <a href=\"https:\/\/www.cnbc.com\/2026\/03\/16\/apollo-john-zito-private-equity-software-valuations.html\">overexposed to the software industry<\/a> \u2013 an area that&#8217;s been <a href=\"https:\/\/www.cnbc.com\/2026\/02\/03\/private-credit-stocks-plummet-on-concern-about-exposure-to-software-industry-disrupted-by-ai.html\">under pressure<\/a> over fears of disintermediation from artificial intelligence. <\/p>\n<p>Software represents about 20% of portfolio exposure among business development companies, known as BDCs (a publicly traded proxy for private credit), according to Jefferies. <a href=\"https:\/\/www.cnbc.com\/2026\/03\/03\/blackstone-private-credit-fund.html\">Headline fears<\/a> about default risk in the sector have driven a small but wealthy group of institutional investors to <a href=\"https:\/\/www.cnbc.com\/2026\/03\/23\/apollo-private-credit-fund-gives-investors-only-45percent-of-requested-withdrawals.html\">seek the exits<\/a> from many of these funds.<\/p>\n<p>&#8220;As public market dislocations and AI-related uncertainty reshape sentiment, dispersion is increasing across the sector, creating opportunities for experienced lenders to deploy capital selectively at improved terms,&#8221; the technology-focused letter reads. <\/p>\n<p>Blue Owl, which is unique in having two of these nontraded private credit funds, is also among the last to report redemptions. The firm&#8217;s percentage of redemptions is multiples higher than its peers. <\/p>\n<p>Most firms have opted to use the 5% cap, but some, including <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-7\"><a href=\"https:\/\/www.cnbc.com\/quotes\/CCLDX\/\">Cliffwater<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-8\"><a href=\"https:\/\/www.cnbc.com\/quotes\/BX\/\">Blackstone<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> allowed slightly more redemptions.<\/p>\n<p>Blue Owl&#8217;s OTIC technology fund saw redemption requests of 17% in the fourth quarter, which it fulfilled. OCIC&#8217;s requests were 5% in the fourth quarter. <\/p>\n<p>The two funds previously drew interest from hedge funds Saba and Cox, which <a href=\"https:\/\/www.cnbc.com\/2026\/02\/23\/blue-owl-software-private-credit-cockroaches-saba-boaz-weinstein-liquidity-crunch.html\">extended tender offers<\/a> to locked-up holders at a steep discount. <\/p>\n<p>Blue Owl said in the most recent quarter, its tech fund&#8217;s redemption requests were amplified by a more concentrated shareholder base, particularly within certain wealth channels and regions. For its flagship fund, the firm said the activity was driven by a &#8220;small minority of the investor base,&#8221; with 90% of shareholders electing not to tender.<\/p>\n<p>Both funds saw gross inflows, which combined with the 5% gates resulted in modest net outflows.<\/p>\n<\/div>\n<div class=\"ArticleBody-googlePreferredSourceContainer\" data-module=\"GooglePreferredSource\" data-id=\"RegularArticle-GooglePreferredSource-5\"><a href=\"https:\/\/www.google.com\/preferences\/source?q=https:\/\/www.cnbc.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/a><\/div>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.cnbc.com\/2026\/04\/02\/blue-owl-private-credit-funds-redemptions-requests.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Blue Owl is experiencing elevated redemption requests for two of its private credit funds, according to letters to shareholders issued Thursday. The firm&#8217;s flagship OCIC fund,&hellip;<\/p>\n","protected":false},"author":1,"featured_media":41219,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[40],"tags":[],"class_list":["post-41218","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/posts\/41218","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=41218"}],"version-history":[{"count":0,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/posts\/41218\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=\/wp\/v2\/media\/41219"}],"wp:attachment":[{"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=41218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=41218"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/foreignnewstoday.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=41218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}