Investors in Blue Owl's two flagship private-credit funds requested $4.7 billion in redemptions during the second quarter, a decline from the $5.4 billion sought in the prior period. The firm's largest fund saw $3.6 billion in withdrawal requests, representing 19% of shares outstanding, while its technology-focused vehicle recorded $1.1 billion, or 38% of its shares.

Both figures represent a meaningful slowdown from the first quarter, when redemption demands reached 22% and 41% of the respective funds. Blue Owl exercised its contractual right to cap redemptions at 5% gate for each vehicle, a mechanism designed to prevent forced sales of illiquid corporate loans that underlie the portfolios.

The redemption wave across private credit intensified after high-profile defaults last year raised questions about asset quality in the space. Despite the quarterly improvement, Blue Owl continues to face withdrawal pressure that exceeds peers, suggesting investor anxiety remains concentrated in its specific holdings rather than reflecting a broad sector retreat.

The 5% gate means most investors will wait months to exit, locking capital into funds that trade at discounts to net asset value on the secondary market. That dynamic could pressure Blue Owl to accelerate distributions or adjust portfolio strategy to stem further outflows.