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

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.

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. 

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%.

“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.

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.

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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.