Blue Owl’s US$36 billion ($45.89 billion) private credit fund received requests from investors to cash in on 21.9% of outstanding shares but capped redemptions to 5% in the first three months of the year. Shares of the firm, which have become one of the favoured ways to bet on a sustained fallout due to the company’s elevated exposure to software businesses that could be laid low by AI, closed at a record low earlier this week.
(April 8): The outlook on the flagship fund of private credit giant Blue Owl Capital Inc was cut to negative by Moody’s Ratings, the latest sign of mounting strains in an industry stung by investors rushing to pull their money from funds aimed at retail buyers.
The rating firm moved the outlook on Blue Owl Credit Income Corp, a non-traded business development company, from stable after “significantly higher-than-peer redemption requests in the first quarter”, it said in a statement Tuesday. The move is part of Moody’s broader revision of its outlook for private credit investment vehicles to negative.
