Investors in two of Blue Owl Capital's flagship private-credit funds asked the firm to return $4.7 billion of their money in the second quarter, a drop from the previous quarter. Withdrawal requests amounted to $3.6 billion, or 19% of shares outstanding, in the firm's largest private-credit fund, while requests for its technology-focused fund came to $1.1 billion, or 38% of that fund. In the previous quarter, investors had requested a total of $5.4 billion from the two funds, which amounted to 22% of the bigger fund and 41% of the technology-focused fund. Blue Owl opted to cap redemptions in both funds at 5%, a built-in feature intended to prevent having to liquidate the funds' hard-to-sell corporate loans to meet withdrawals. Private-credit funds have been contending with a surge of redemption requests since high-profile defaults last year sparked worries about the health of their investments, and withdrawal requests at Blue Owl remained higher than other big private-credit funds despite the slowdown in the second quarter.
Blue Owl Capital CorporationInvestors requested $4.7 billion in redemptions from Blue Owl's flagship private-credit funds, indicating capital outflows and potential liquidity issues.
Blue Owl Capital IncInvestors requested $4.7 billion in redemptions from Blue Owl's flagship private-credit funds, indicating capital outflows and potential liquidity issues.