Blue Owl Limits Fund Redemptions to 5% After Investors Seek 21.9% and 40.7% Withdrawals
Blue Owl will cap redemptions at 5% in its $36bn Credit Income fund after investors requested 21.9% of shares in Q1 (up from 5.2%), and in its Technology Income fund after 40.7% sought withdrawals (up from 15.4%). Its shares tumbled 6.5% following the restriction.
1. Redemption Requests Surge
In the quarter ended March 31, investors requested 21.9% of outstanding shares in the $36bn Blue Owl Credit Income fund (up from 5.2%) and 40.7% in the Technology Income fund (up from 15.4%).
2. Cap Implementation
Blue Owl will cap redemptions at 5% for both funds, honoring $988m in the larger fund and $179m in the technology fund, while deferring roughly $3.2bn in withdrawal requests.
3. Share Performance Impact
Shares of Blue Owl fell as much as 6.5% after the redemption restrictions were announced, reaching record low levels on investor concerns over private credit liquidity.