Blue Owl has moved to limit withdrawals from two of its funds after receiving elevated redemption requests in the first quarter, as investor sentiment towards private credit – particularly technology-focused strategies – weakened, according to a report by Reuters.
The firm said it will cap redemptions at 5% of shares in both Blue Owl Technology Income Corp (OTIC) and Blue Owl Credit Income Corp (OCIC), despite investors reportedly requesting to withdraw 40.7% and 21.9% of shares respectively.
The WSJ reported that total redemption requests across the two funds reached around $5.4bn.
The 5% threshold aligns with typical quarterly liquidity limits for non-traded business development companies, although the firm had previously allowed higher redemptions of 15.4% in OTIC last quarter.
Blue Owl pointed to a “meaningful disconnect” between public sentiment and underlying portfolio performance, with fund CEO Craig Packer noting that tender activity has increased across the non-traded BDC market amid heightened negative sentiment in early 2026.
