Blue Owl restricts fund redemptions, leading to stock declines among top asset management institutions

Glonghui, April 2 — After Blue Owl Capital announced it would restrict redemptions from two of its private credit funds, top asset management companies’ stock prices plunged sharply on Thursday. Blackstone Group, Apollo Global Management, KKR, and Ares Management all fell by at least 4%. Blue Owl, along with Apollo, Ares, and BlackRock, continues to impose redemption limits on non-traded business development companies (BDCs). However, the large volume of redemption requests highlights that Blue Owl is at the core of attention in the private credit market. Blue Owl's stock previously suffered its worst quarterly decline on record and has fallen for eight consecutive months. At the beginning of March this year, bearish bets on its stock reached a historic high. As investors grow increasingly concerned about lending activities in the $1.8 trillion private credit market and exposure to companies impacted by artificial intelligence, BDCs are experiencing a wave of redemptions.