Blue Owl permanently halts redemptions at private credit fund aimed at retail investors

Private credit group Blue Owl will permanently restrict investors from withdrawing their cash from its inaugural private retail debt fund, backtracking from an earlier plan to reopen to redemptions this quarter. The New York investment group on Wednesday said investors in Blue Owl Capital Corp II would no longer be able to redeem their investments in quarterly intervals but that the company would instead return investors’ capital in episodic payments as it sells down assets in coming quarters and years. The decision underlines the risks facing retail investors, who have ploughed hundreds of billions of dollars into funds with limited liquidity rights. The company said the fund “intends to prioritise delivering liquidity ratably to all shareholders through quarterly return of capital distributions, which are intended to replace future quarterly tender offers and may be funded by earnings, repayments, other asset sale opportunities or strategic transactions”. Blue Owl’s announcement came as part of a $1.4bn sale of credit assets across three of its funds, including $600mn for its retail credit fund. The sale amounts to 30 per cent of its total assets, which will be distributed to investors. read more [https://www.ft.com/content/b2f299f6-2a82-4a43-bcbf-86cac3937550](https://www.ft.com/content/b2f299f6-2a82-4a43-bcbf-86cac3937550)