Blue Owl Capital Shares Plunge 40% as Fund Restricts Withdrawals
A Goldman Sachs International co-CEO said clients welcome focusing on the Iran war over worries about AI disruption and a private credit shakeout. Blue Owl Capital shares have plunged nearly 40% this year and one fund has restricted withdrawals in response to the selloff.
1. Goldman Banker Highlights Distraction
Kunal Shah, co-CEO of Goldman Sachs International, told clients they were relieved to discuss the Iran war rather than software exposures or private credit risks. His remarks underscored growing unease among investors over potential AI-driven business model disruptions and a looming private credit correction.
2. Tech-Focused Lender Under Pressure
Shares of tech-focused lender Blue Owl Capital have fallen almost 40% year to date as private credit markets reel. One of its funds imposed withdrawal limits last month after a surge in redemption requests, highlighting liquidity strains in the sector.
3. Pension Giant’s Credit Exposure
Legal & General reported that over 20% of its diversified annuity portfolio is invested in private credit, generating returns to meet policyholder obligations. The group said it remains selective and is comfortable with its exposure, as its private market assets under management grew by nearly a third to £75 billion.