⚠️The US private credit exodus is deepening:
Blue Owl Credit Income Corp, $34 billion in assets, received redemption requests for 18.8% of shares, or $3.6 billion, in Q2, nearly 4 times the standard 5% quarterly limit.
Blue Owl Technology Income Corp, its smaller technology-focused fund, saw requests for 38.1% of shares, or $1.1 billion, more than 7 times the standard limit and the highest redemption rate of any major non-traded private credit fund tracked.
By comparison, Cliffwater Corporate Lending Fund saw redemption requests rise to 17.0% in Q2 from 14.0% in Q1, while Apollo Debt Solutions BDC rose sharply to 16.8% from 11.2%, showing the pressure is broadening across the entire industry.
Both Blue Owl funds have now been forced to cap withdrawals for a 2nd consecutive quarter, joining Apollo, Ares, BlackRock, and Blackstone in restricting investor access to their own money.
This redemption pressure has persisted almost entirely despite a historic rebound in markets and supposedly easing fears over software-linked loan disruption, suggesting the stress runs deeper than short-term sentiment.
As a result, Blue Owl shares have plunged roughly -56% over the past 12 months, even as the firm insists it holds sufficient liquidity.
Redemption pressure across the $2 trillion private credit industry continues to intensify.
Blue Owl Credit Income Corp, $34 billion in assets, received redemption requests for 18.8% of shares, or $3.6 billion, in Q2, nearly 4 times the standard 5% quarterly limit.
Blue Owl Technology Income Corp, its smaller technology-focused fund, saw requests for 38.1% of shares, or $1.1 billion, more than 7 times the standard limit and the highest redemption rate of any major non-traded private credit fund tracked.
By comparison, Cliffwater Corporate Lending Fund saw redemption requests rise to 17.0% in Q2 from 14.0% in Q1, while Apollo Debt Solutions BDC rose sharply to 16.8% from 11.2%, showing the pressure is broadening across the entire industry.
Both Blue Owl funds have now been forced to cap withdrawals for a 2nd consecutive quarter, joining Apollo, Ares, BlackRock, and Blackstone in restricting investor access to their own money.
This redemption pressure has persisted almost entirely despite a historic rebound in markets and supposedly easing fears over software-linked loan disruption, suggesting the stress runs deeper than short-term sentiment.
As a result, Blue Owl shares have plunged roughly -56% over the past 12 months, even as the firm insists it holds sufficient liquidity.
Redemption pressure across the $2 trillion private credit industry continues to intensify.