NEW YORK, April 2, 2026, 09:22 EDT
Blue Owl Capital is capping quarterly withdrawals at 5% for its two main retail private credit funds, after investors sought to pull out 40.7% of shares from Blue Owl Technology Income Corp. and 21.9% from Blue Owl Credit Income Corp., according to early shareholder updates. OCIC—among the sector’s largest funds—manages roughly $36 billion in assets. Reuters
The decision drops right into an ongoing crunch in private credit, a market where funds offer investors just a trickle of liquidity while the assets themselves can be tough to offload in a hurry. KKR’s K-FIT, BlackRock’s HPS Corporate Lending Fund, and Apollo’s flagship fund all saw recent redemption rates of 6.3%, 9.3%, and 11.2%, respectively—each still trailing Blue Owl’s latest tally. Reuters
Both funds fall under the business development company, or BDC, category—structures focused on lending to middle-market firms and usually buying back just a fraction of their shares every quarter. For Blue Owl, the first-quarter repurchase window started March 3 and closed March 31, with April 30 listed as the expected payment date on the funds’ repurchase pages. SEC
Last quarter, Blue Owl allowed OTIC holders to redeem up to 15.4% of shares—higher than usual—but the firm has now reverted to its normal cap. According to investor letters, OCIC saw requests totaling 5.2% last period, while OTIC hit 15.4%, marking a sharp jump over just three months. Reuters
Six weeks ago, Blue Owl unloaded $1.4 billion in direct-lending assets across three credit funds—99.7% of par—including $400 million from OTIC. That deal let the firm knock down debt and swap out OBDC II’s quarterly redemptions for return-of-capital distributions. At the time, Craig Packer, co-president of Blue Owl’s BDCs, called the sale price “an extremely strong statement” as investors drilled the firm on portfolio marks and quality. Blue Owl Capital Corporation
Software has been the main source of nerves. Back in February, Packer put OTIC’s software holdings at 46% of its total assets. For Blue Owl, internet software and services stood out as the largest slice in its February asset sale. Meanwhile, Reuters reported that the ongoing surge in AI has only intensified pressure on private credit software valuations. Reuters
Responses have varied across firms. KKR put a 5% limit on K-FIT following redemption requests totaling 6.3%. BlackRock’s HPS fund also hit its 5% ceiling after investors asked for 9.3% of NAV. Blackstone took a different approach, raising BCRED’s cap to 7% and bringing in $400 million from employees to cover every withdrawal. Reuters
Some analysts aren’t convinced valuations are stretched. Citizens’ Brian McKenna pointed in February to Blue Owl’s loan sale, saying those marks now look “marked-to-market and are validated.” Oppenheimer’s Mitchel Penn argued the deal generated liquidity in private credit while holding firm on price—no discounts for buyers. Reuters
Still, the cap doesn’t clear the backlog. According to Blue Owl’s repurchase pages, investors whose requests aren’t fully met after proration have to submit them again in the next quarterly window—a dynamic that could push the queue into summer if cash-outs persist. Sector-wide, managers continue to enforce 5% limits, aiming to sidestep forced selling when markets stumble. Blue Owl Capital
Blue Owl wrapped up 2025 with $307.4 billion in assets under management. Shares slipped to $8.71 at 9:00 a.m. EDT, off $0.43 from the last close, as the newest tender results shoved liquidity concerns back into focus in the private-credit conversation. SEC
