Blue Owl's Redemption Shift Shakes Private Credit Industry

Key Takeaways Blue Owl ended quarterly redemptions for OBDC II, shifting to periodic payouts funded by asset sales.Rising withdrawals at OBDC II and liquidity pressure drove the change in fund structure.APO, BX, KKR and ARES shares fell as investors reassessed private credit liquidity risks.The $1.8-trillion private credit market is facing a pivotal test after Blue Owl Capital Inc. (OWL) moved to restrict investor withdrawals from one of its retail-focused funds, an action that reverberated across alternati ...