Private credit major Blue Owl Capital saw its shares fall to a record low on Monday, extending a multi-week slide driven by growing unease over the $1.8tn private credit market, according to a report by Bloomberg.
The stock closed at $8.45, down 1.4%, dipping below its previous low from late 2022.
The decline followed the firm’s announcement that it would temporarily restrict redemptions from two of its private credit funds after a spike in withdrawal requests. Retail-focused business development companies, which channel private credit investments to individual investors, have faced heavy redemptions amid concerns over lending practices and the vulnerability of certain portfolio companies to AI disruption.
Blue Owl’s public listing has become a focal point for investors betting on potential stress in the private credit sector, given the firm’s notable exposure to software companies that could be significantly affected by AI-related market shifts.
