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

Blue Owl Capital (OWL) inventory sank to a contemporary all-time low of $7.95 on April 2. This comes after the agency informed buyers it will cap withdrawals on two of its non-public credit score funds, following $5.4 billion in redemption requests within the first quarter alone.

The non-public capital supervisor has now misplaced greater than 40% of its market worth year-to-date, as investor confidence within the $1.8 trillion non-public credit score sector continues to erode.

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

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 each automobiles, the agency opted to cap redemptions at 5%.

“We proceed to observe a significant disconnect between the general public dialogue on non-public credit score and the underlying tendencies in our portfolio,” Blue Owl famous within the shareholder letters.

Blue Owl is much from alone. Apollo Global Management imposed an similar 5% cap after receiving redemption requests exceeding 11% of excellent shares. BlackRock has additionally gated withdrawals from its $26 billion fund.

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Bloomberg data means that withdrawal requests throughout greater than a dozen non-public credit score funds have totaled roughly $13 billion as of late March. Private capital managers have confronted mounting strain as market turbulence and fears over AI-driven disruption to software program debtors push investors toward the exits.

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