Blue Owl Caps Redemptions Following Massive Requests From Investors

Blue Owl Capital (NYSE: OWL) has capped redemptions in its private credit and technology-focused funds at 5% after investors requested withdrawals of 22% and 41%, respectively. The firm cited heightened market concerns regarding AI-related disruptions to software companies as a reason for the surge in redemption requests. Blue Owl's stock is down approximately 2% midday and has decreased nearly 60% over the past year. Other firms in the private credit market, including Oaktree Capital and Morgan Stanley, have also restricted redemptions amid rising rates and tighter liquidity.