Investing.com — stock fell 2.3% Thursday after the alternative investment firm announced it would restrict withdrawals from one of its retail-focused private credit funds.
The New York-based firm said investors in Blue Owl Capital Corp II (OBDC II) will no longer be able to redeem shares on a quarterly basis. Instead, the fund will return capital through periodic distributions funded by loan repayments, asset sales or other transactions, reversing a previous plan to resume redemptions this quarter.
This decision comes after Blue Owl disclosed on Wednesday that it had sold approximately $1.4 billion in direct-lending investments across three funds: OBDC II, Blue Owl Capital Corporation, and Blue Owl Technology Income Corp. The buyers included North American public pension funds and insurance companies.
The redemption halt highlights potential liquidity challenges facing retail investors in the private credit market. While investors are typically permitted to redeem a portion of their capital each quarter, these payouts can be restricted if withdrawal requests exceed predetermined limits.
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