Blue Owl’s redemption change stokes private credit anxiety

Anxiety about private credit has risen after Blue Owl Capital altered redemption rules for a prominent fund, amplifying worries over semi-liquid vehicles sold to retail investors. Those vehicles can "gate" withdrawals — a protection meant to shield funds in turmoil that can also deepen investor unease.

Some have proposed moving such assets into target-date funds with longer horizons so only savers who will not need their money for decades are exposed. Markets reacted sharply: shares of private credit firms, including Apollo, Ares and Blackstone, plunged after Blue Owl said it would decide quarterly how much investors can redeem rather than permit a set amount.

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