Blue Owl private credit funds redemptions capped at 5% after steep requests
The Blue Owl sign outside the Seagram Building at 375 Park Avenue in New York, USA, on Thursday, March 12, 2026.
Michael Nagle | Bloomberg | Getty Images
Blue Owl There are increasing demands for repayment for two of the private loan funds, according to letters sent to shareholders on Thursday.
He noted that OCIC, the firm’s flagship, received repurchase requests for about 21.9% of outstanding shares in the first quarter, with about $36 billion in assets under management. Blue Owl’s smaller, technology-focused fund, OTIC, received a 40.7% rate of redemption requests during the same period, it said.
In both funds, Blue Owl opted to cap claims at 5%. Blue Owl attributed the higher-than-usual demands to “growing market concerns about AI-related disruptions at software companies.”
“We continue to observe a meaningful disconnect between the public dialogue regarding private credit and the underlying trends in our portfolio,” Blue Owl said in its shareholder letters.
“As public market shifts and uncertainty around AI reshape sentiment, dispersion is increasing across the sector, creating opportunities for experienced lenders to selectively deploy capital on improved terms,” the technology-focused letter said.
Shares of Blue Owl fell nearly 9% in premarket trading Thursday.
Blue Owl, which is unique in having two of these private non-commercial loan funds, is also among the last to report redemptions. The company’s payback percentage is many times higher than its peers.
Most companies chose to use the 5% cap, but some cliff water And Karataş slightly more redemptions were allowed.
Blue Owl’s OTIC technology fund saw 17% redemption claims in the fourth quarter and fulfilled those claims. OCIC’s claims were 5% in the fourth quarter.
The two funds had previously attracted the interest of hedge funds Saba and Cox, which made tender offers at a steep discount to their locked-in holders.
Blue Owl said the technology fund’s redemption claims in the latest quarter were strengthened by a more concentrated shareholder base, particularly in certain wealth channels and regions. The firm said activity for its flagship fund was driven by a “small minority of the investor base” and that 90% of shareholders chose not to tender.
Both funds saw gross inflows, which combined with 5% caps resulted in modest net outflows.
