Market history · Private credit ·
Blue Owl caps withdrawals from two private credit funds
On 2 April 2026 Blue Owl said it would honour only 5% of the withdrawal requests it had received in two of its private credit funds. In its flagship fund, Blue Owl Credit Income Corp, which held about $36 billion in assets, investors had asked to redeem roughly 22% of the shares. In OTIC, a smaller technology-focused fund of about $6.2 billion, requests were for 41%. Together the requests came to about $5.4 billion for the first quarter.
Blue Owl put the surge in requests down to heightened market concern about artificial intelligence disrupting software companies, which are common borrowers in these funds. It added that most investors in the flagship fund had not asked to redeem, and that the fund held several billion dollars in cash, credit lines and liquid assets. OTIC had already seen elevated withdrawals the previous quarter, when 15.4% of its shares were allowed to be redeemed.
Funds of this kind lend to companies directly and do not trade on an exchange, so investors can usually sell only at set intervals and subject to a cap. The episode showed that cap working as designed, and why it matters to understand it before investing.
The takeaway
Withdrawal limits are written into private credit funds on purpose. They protect remaining investors from forced selling, and they mean that access to your money is not guaranteed on the day you want it.
Sources
This is a retrospective about a past event, provided for general information. It is not investment advice, does not describe RockLake's positioning at the time, and past performance is not a guide to future performance. Read the risk warning.