Blue Owl signage outdoors the Seagram Constructing at 375 Park Avenue in New York, US, on Thursday, March 12, 2026.
Michael Nagle | Bloomberg | Getty Photographs
Blue Owl is experiencing elevated redemption requests for 2 of its personal credit score funds, in line with letters to shareholders issued Thursday.
The agency’s flagship OCIC, with about $36 billion in belongings below administration, acquired redemption requests of about 21.9% of shares excellent throughout the first quarter, the agency mentioned. Blue Owl’s smaller, tech-oriented fund, OTIC, acquired redemption requests of 40.7% throughout the identical interval, it mentioned.
In each of the funds, Blue Owl opted to cap requests at 5%. Blue Owl attributed the higher-than-usual requests to “heightened market issues round AI-related disruption to software program corporations.”
“We proceed to watch a significant disconnect between the general public dialogue on personal credit score and the underlying traits in our portfolio,” Blue Owl mentioned within the shareholder letters.
“As public market dislocations and AI-related uncertainty reshape sentiment, dispersion is growing throughout the sector, creating alternatives for skilled lenders to deploy capital selectively at improved phrases,” the technology-focused letter reads.
Shares of Blue Owl fell roughly 9% in premarket buying and selling Thursday.
Blue Owl, which is exclusive in having two of those non-traded personal credit score funds, can be among the many final to report redemptions. The agency’s proportion of redemptions is multiples greater than its friends.
Most companies have opted to make use of the 5% cap, however some, together with Cliffwater and Blackstone allowed barely extra redemptions.
Blue Owl’s OTIC expertise fund noticed redemption requests of 17% within the fourth quarter, which it fulfilled. OCIC’s requests had been 5% within the fourth quarter.
The 2 funds beforehand drew curiosity from hedge funds Saba and Cox, which prolonged tender provides to locked-up holders at a steep low cost.
Blue Owl mentioned within the most-recent quarter, its tech fund’s redemption requests had been amplified by a extra concentrated shareholder base, notably inside sure wealth channels and areas. For its flagship fund, the agency mentioned the exercise was pushed by a “small minority of the investor base,” with 90% of shareholders electing to not tender.
Each funds noticed gross inflows, which mixed with the 5% gates resulted in modest web outflows.