Blue Owl Received $4.7 Billion in Redemption Requests but Shares Rose 10 %

Investors requested withdrawals totaling $4.7 billion from two Blue Owl funds in the most recent quarter. Requests reached $3.6 billion, or about 19 percent of assets, at the flagship fund and $1. Blue Owl honored 5 percent of all withdrawal requests during the quarter.

The cap matches the standard limit used across the private-credit industry to prevent forced sales at distressed prices. Redemption requests had been higher in the prior quarter at 22 percent for the flagship fund and 40 percent for the software fund. Redemptions at the OTIC fund came largely from Asian family offices.

Blue Owl marketed its funds heavily to individual investors. Requests at both funds exceeded levels reported at peer funds managed by Apollo and KKR. None of Blue Owl’s software loans entered delinquent status during the quarter.

The firm reported that 0.2 percent of the OTIC loan book is categorized as unlikely to be fully repaid. Blue Owl shares opened 10 percent higher on Thursday, July 2. The firm was formed by veterans of KKR, Goldman Sachs, Blackstone, and Neuberger Berman.