Blue Owl Capital Inc. again limited redemptions from two of its private credit funds at 5%, as fears around artificial intelligence kept requests at its flagship technology fund well above industry peers. Investors in the roughly $5 billion Blue Owl Technology Income Corp. saw shareholders look to pull 39% of shares in the third quarter, a slight increase from the 38.1% requested previously. Results for Blue Owl’s $35 billion Blue Owl Credit Income Corp. improved slightly as investors looked to pull 16.8% of shares in the third quarter, down from 18.8% in the prior period.
Blue Owl is among the last firms in the $1.8 trillion direct lending market to provide an update on the queue of investors looking to cash out of its BDCs. The vehicles, designed to offer partial liquidity, have come under pressure this year as investors rushed to exit private credit over concerns about asset quality and the safety of software loans amid advances in artificial intelligence. The biggest funds in the industry have generally seen withdrawal pressure level off or decline slightly in the third quarter.
Both Blue Owl funds, which have returned more than 9% annualized since their inception, said they expect higher base rates to bolster the earning power of the funds.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing