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Blue Owl Limits Fund Redemptions, Shares Tumble
2 Apr
Summary
- Blue Owl Capital stock dropped 9% following redemption limits.
- Two private credit funds faced significant redemption requests.
- Limits ensure maximum quarterly repurchase of 5% for affected funds.
Blue Owl Capital (OWL) experienced a 9% share price drop on Thursday after implementing redemption restrictions on two of its private credit funds. The Blue Owl Credit Income Corp. (OCIC) and Owl Technology Income Corp. (OTIC) faced considerable redemption and tender requests, totaling 21.9% and 40.7% of their outstanding shares, respectively, during the recent quarter.
Both funds are now operating under their maximum quarterly repurchase limit of 5%, fulfilling these requests on a pro-rata basis. While OCIC experienced net outflows of $116 million, representing less than 1% of its December 31, 2025, net asset value, OTIC saw net outflows of $52 million, less than 2% of its approximately $3 billion net asset value.
Management for OTIC attributed the increased tender activity to negative sentiment surrounding non-traded business development companies and concerns over AI's potential disruption to software companies. As of February 28, 2026, both OCIC and OTIC maintained substantial liquidity reserves and relatively low net leverage ratios.
