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UBS Sparks Investor Flight From Blue Owl Fund
11 Jul
Summary
- UBS advised clients to reduce private credit exposure.
- Investor withdrawals affected Blue Owl Technology Income fund.
- Blue Owl reported a low 0.2% non-accrual rate for its fund.
In the fourth quarter of 2025, UBS advised some of its clients to reduce their substantial holdings in private credit. This guidance prompted significant investor withdrawals from the Blue Owl Technology Income fund. A substantial portion of the fund's capital, at least 60%, was reportedly provided by UBS clients based in Asia.
In response to the reported outflows, Blue Owl emphasized the resilience of the fund's credit quality. The company noted a low non-accrual rate of just 0.2%. This financial metric underpins the fund's stable distribution yield, which stands at 9.2%. These comments were issued to underscore the fund's ongoing performance, distinguishing client-driven rebalancing from any perceived deterioration in credit fundamentals.
