Blue Owl Capital received $4.7bn of redemption requests across two flagship private credit funds in the second quarter, as pressure on semi-liquid private markets vehicles continued, according to a report by the Financial Times.
Withdrawal requests at Blue Owl Technology Income Corp and Blue Owl Credit Income Corp declined slightly from the previous quarter but remained elevated, at 38% and almost 19% of fund assets respectively. Both vehicles capped redemptions at 5%, in line with limits built into the funds.
The requests came during another difficult quarter for retail-facing private credit funds. Across 20 funds tracked by the FT, investors sought to withdraw $22bn in the second quarter, marking the second consecutive quarter in which redemption requests exceeded $20bn. Private credit funds reportedly honoured less than 40% of those requests, leaving more than $14bn locked in the vehicles.
Blue Owl told investors in its direct lending fund that it was encouraged by a modest decline in tender requests and said recent performance had contributed to improved investor sentiment.
The firm, which manages $315bn, has relied heavily on private wealth and retail investors to support its growth, raising more than $72bn from the channel since its launch in 2016. Its non-traded private credit funds generated more than $570m in management and performance fees last year, according to SEC filings.
