Blue Owl Stock Crashes To All-Time Low After $5.4 Billion Redemption Requests

What Happened

Blue Owl Capital (OWL) stock sank to a fresh all-time low of $7.95 on April 2. This comes after the firm told investors it would cap withdrawals on two of its private credit funds, following $5.4 billion in redemption requests in the first quarter alone.

The private capital manager has now lost more than 40% of its market value year-to-date, as investor confidence in the $1.8 trillion private credit sector continues to erode.

It’s technology-focused Blue Owl Technology Income Corp (OTIC) saw an even more dramatic surge. Investors sought to withdraw 40.7% of shares from this $6.2 billion fund. In both vehicles, the firm opted to cap redemptions at 5%.

Bloomberg data suggests that withdrawal requests across more than a dozen private credit funds have totaled approximately $13 billion as of late March. Private capital managers have faced mounting pressure as market turbulence and fears over AI-driven disruption to software borrowers push investors toward the exits.

Market Context

Blue Owl is far from alone. Apollo Global Management imposed an identical 5% cap after receiving redemption requests exceeding 11% of outstanding shares. BlackRock has also gated withdrawals from its $26 billion fund.

Why It Matters

Blue Owl disclosed that its $36 billion flagship fund, Blue Owl Credit Income Corp (OCIC), received redemption requests totaling 21.9% of shares outstanding during the first quarter.

“We continue to observe a meaningful disconnect between the public dialogue on private credit and the underlying trends in our portfolio,” Blue Owl noted in the shareholder letters.

Details

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The post Blue Owl Stock Crashes to All-Time Low After $5.4 Billion Redemption Requests appeared first on BeInCrypto.