Blue Owl Capital says redemption pressure eased in the third quarter, but its tech-credit fund stayed near its cap

Blue Owl Capital, one of the larger managers in the private credit industry, reported that redemption and tender-offer requests across two of its non-traded business development company funds totaled approximately $4.2 billion in the third quarter of 2026 — a decline from $4.7 billion in the second quarter. Both funds are structured with a 5% quarterly repurchase cap, a common feature in non-traded BDCs that limits how much of a fund’s net assets can be redeemed in any single quarter regardless of how much investors request.

The easing was not uniform across Blue Owl’s credit funds. At the firm’s flagship Blue Owl Credit Income Corp, known as OCIC, withdrawal requests fell to approximately 16.8% of net assets, down from 18.8% in the prior quarter — a meaningful retreat from what had been elevated redemption pressure. By contrast, Blue Owl Technology Income Corp, or OTIC, saw requests climb to roughly 39% of net assets, up from 38.1%, remaining near its recent peak and signaling that investor unease has not eased evenly across the firm’s product lineup.

Blue Owl attributed the persistently high redemption pressure at its technology-focused fund to investor concern specifically about borrowers tied to artificial intelligence and software companies, a sector where valuations and financing structures have drawn increased scrutiny. Because OTIC concentrates its lending in that corner of the private credit market, it has become more exposed than Blue Owl’s broader credit funds to shifts in sentiment about AI- and software-sector credit risk specifically, rather than private credit broadly.

Elevated redemption requests in non-traded BDCs do not necessarily indicate underlying credit problems in a fund’s loan book; they can also reflect investors seeking liquidity for reasons unrelated to the fund’s performance, within a structure that was designed from the outset to limit how quickly that liquidity can be provided. The repurchase cap mechanism means a high redemption-request rate, such as OTIC’s roughly 39%, results in only a partial fulfillment of those requests in the current quarter, with the remainder carried forward or resubmitted in subsequent periods.