Blue Owl Stock Crashes to All-Time Low After $5.4 Billion Redemption Requests

Source: [https://beincrypto.com/blue-owl-stock-record-low-fund-redemptions/](https://beincrypto.com/blue-owl-stock-record-low-fund-redemptions/) Investors requested to pull 40.7% of Blue Owl's $6.2 billion tech-focused fund and 21.9% of its $36 billion flagship credit fund in Q1, among the largest quarterly redemption requests ever seen in the non-traded BDC market. Blue Owl is honoring only 5% of those requests, citing a "meaningful disconnect between public dialogue on private credit and the underlying trends in our portfolio." OWL stock dropped 5.4% to $8.24, now down over 40% year-to-date. Apollo, Ares, Blackstone, KKR, and BlackRock all slid in tandem. The deeper concern driving the tech fund specifically: investors are fleeing exposure to software companies that could be disrupted by AI, exactly the type of loans these private credit funds are built around. Private credit grew from $357 billion in 2016 to $1.6 trillion in 2024. The question now is whether the gates being put up across the industry are a temporary liquidity event or the first signs of something structural.