Blue Owl Caps Redemptions at 5% After $5.3B Requests

Investors in Blue Owl Capital's private credit funds submitted substantial redemption requests in the first quarter, prompting the firm to limit withdrawals to 5 percent of assets, in line with industry practices. The requests targeted the firm's flagship $36 billion Owl Credit Income Corp. fund, known as OCIC, at 21.9 percent of outstanding shares, and its $6 billion technology-focused Owl Technology Income Corp. fund, or OTIC, at 40.7 percent, according to letters sent to shareholders.

The combined requests totaled approximately $5.3 billion across the two funds, though Blue Owl honored only about $1.2 billion after applying the cap, which amounted to $988 million from OCIC and $179 million from OTIC. Officials at the firm noted that the pressure came from a concentrated group of institutional investors rather than widespread retail participation, with 90 percent of OCIC shareholders opting not to redeem. For OTIC, the requests were amplified by its specialized focus on software and technology loans, amid concerns over artificial intelligence disrupting those sectors. Gross inflows of around $1 billion partially offset the activity, resulting in modest net outflows.