{"id":3325,"date":"2026-04-02T13:45:40","date_gmt":"2026-04-02T13:45:40","guid":{"rendered":"https:\/\/finzexpert.com\/blog\/blue-owl-private-credit-funds-redemptions-capped-at-5-after-steep-requests\/"},"modified":"2026-04-02T13:45:40","modified_gmt":"2026-04-02T13:45:40","slug":"blue-owl-private-credit-funds-redemptions-capped-at-5-after-steep-requests","status":"publish","type":"post","link":"https:\/\/finzexpert.com\/blog\/blue-owl-private-credit-funds-redemptions-capped-at-5-after-steep-requests\/","title":{"rendered":"Blue Owl private credit funds redemptions capped at 5% after steep requests"},"content":{"rendered":"\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\">Blue Owl<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>Shares of Blue Owl fell roughly 9% in premarket trading Thursday. <\/p>\n<p>The private credit industry has been roiled in recent months by concerns that it is over-exposed to the software industry \u2013 an area that&#8217;s been under pressure 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. Headline fears about default risk in the sector have driven a small but wealthy group of institutional investors to seek the exits 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 non-traded 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\">Cliffwater<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\">Blackstone<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 extended tender offers 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\">Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/div>\n<\/div>\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, 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, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3326,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[2226,3135,166,2228,2223,344,3134,3136,673],"class_list":["post-3325","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan","tag-blue","tag-capped","tag-credit","tag-funds","tag-owl","tag-private","tag-redemptions","tag-requests","tag-steep"],"_links":{"self":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/3325","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=3325"}],"version-history":[{"count":0,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/3325\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media\/3326"}],"wp:attachment":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=3325"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=3325"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=3325"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}